Financial Analysis: Willdan Group (NASDAQ:WLDN) vs. Primech (NASDAQ:PMEC)

Primech (NASDAQ:PMEC) and Willdan Group (NASDAQ:WLDN) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Profitability

This table compares Primech and Willdan Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Primech	N/A	N/A	N/A
Willdan Group	5.60%	18.60%	9.65%

Valuation and Earnings

This table compares Primech and Willdan Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primech	$74.35 million	0.95	-$1.94 million	N/A	N/A
Willdan Group	$565.80 million	2.46	$22.57 million	$2.39	39.67

Willdan Group has higher revenue and earnings than Primech.

Institutional & Insider Ownership

88.1% of Primech shares are owned by institutional investors. Comparatively, 72.3% of Willdan Group shares are owned by institutional investors. 8.6% of Willdan Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Primech has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Willdan Group has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Primech and Willdan Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primech	0	0	0	0	0.00
Willdan Group	0	0	2	1	3.33

Willdan Group has a consensus target price of $111.50, indicating a potential upside of 17.60%. Given Willdan Group’s stronger consensus rating and higher probable upside, analysts clearly believe Willdan Group is more favorable than Primech.

Summary

Willdan Group beats Primech on 12 of the 13 factors compared between the two stocks.

About Primech

Primech Holdings Ltd. provides facilities and stewarding services in the public and private sectors in Singapore. Its facilities services include educational institutions cleaning, airport cleaning, and conservancy areas cleaning services, as well as offers cleaning of hotels, public spaces, roads, condominium, office, industrial, and retail stores. The company offers housekeeping services; specialized cleaning services, including marble polishing, building façade cleaning, and clean room sanitation services; and waste management and pest control services. In addition, it provides stewarding services comprising cleaning of the kitchen area of healthcare facilities, hotels, and restaurants, as well as supplies ad hoc customer service officers, and food and beverage service crews to healthcare facilities, hotels, and restaurants. Further, the company operates HomeHelpy, an online portal that allows individual customers to book cleaning services in homes and offices; and manufactures and sells cleaning supplies, such as hand soaps, hand soap dispensers, cleaning fluids, and garbage bags used for general, floor, carpet, restroom, or kitchen purposes, as well as treatment products used in the marine industry under the D’Bond brand name. The company was incorporated in 2020 and is based in Singapore. Primech Holdings Ltd. is a subsidiary of Sapphire Universe Holdings Limited.

About Willdan Group

Willdan Group, Inc., together with its subsidiaries, provides professional, technical, and consulting services primarily in the United States. It operates in two segments, Energy, and Engineering and Consulting. The Energy segment offers comprehensive audit and surveys, program design and implementation, master planning, demand reduction, grid optimization, benchmarking analyses, design engineering, construction management, performance contracting, installation, alternative financing, measurement and verification services, and software and data analytics, as well as energy consulting and engineering, turnkey facility and infrastructure projects, and customer support services. The Engineering and Consulting segment provides building and safety, city engineering and code enforcement, development plan review and inspection, disaster recovery, geotechnical and earthquake engineering, planning and surveying, contract staff support, program and construction management, structural engineering, transportation and traffic engineering, and water resources services. This segment also offers district administration, financial consulting, and federal compliance services. It serves public and governmental agencies, including cities, counties, redevelopment agencies, water districts, school districts, and universities; investor and municipal owned energy utilities; state and federal agencies; and commercial and industrial firms, as well as various other special districts and agencies. The company was founded in 1964 and is headquartered in Anaheim, California.