Head-To-Head Review: Healthcare Services Group (NASDAQ:HCSG) vs. Dalrada Financial (OTCMKTS:DFCO)

Healthcare Services Group (NASDAQ:HCSG) and Dalrada Financial (OTCMKTS:DFCO) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Healthcare Services Group and Dalrada Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Services Group	2.20%	12.23%	7.52%
Dalrada Financial	-121.21%	N/A	-104.62%

Volatility & Risk

Healthcare Services Group has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Dalrada Financial has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Earnings & Valuation

This table compares Healthcare Services Group and Dalrada Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Services Group	$1.81 billion	0.73	$39.47 million	$0.54	34.74
Dalrada Financial	$20.30 million	0.21	-$24.65 million	($0.22)	-0.16

Healthcare Services Group has higher revenue and earnings than Dalrada Financial. Dalrada Financial is trading at a lower price-to-earnings ratio than Healthcare Services Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

98.0% of Healthcare Services Group shares are held by institutional investors. 2.6% of Healthcare Services Group shares are held by insiders. Comparatively, 7.1% of Dalrada Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Healthcare Services Group and Dalrada Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Services Group	0	4	3	0	2.43
Dalrada Financial	0	0	0	0	0.00

Healthcare Services Group currently has a consensus price target of $19.40, suggesting a potential upside of 3.41%. Given Healthcare Services Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Healthcare Services Group is more favorable than Dalrada Financial.

Summary

Healthcare Services Group beats Dalrada Financial on 12 of the 14 factors compared between the two stocks.

About Healthcare Services Group

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment provides food purchasing, meal preparation, and professional dietitian services, which include the development of menus that meet the dietary needs of residents; and on-site management and clinical consulting services to facilities. It serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. The company was incorporated in 1976 and is based in Bensalem, Pennsylvania.

About Dalrada Financial

Dalrada Financial Corporation, together with its subsidiaries, operates as a technology and manufacturing company. It operates through Genefic, Dalrada Energy Services, Dalrada Precision Manufacturing, and Dalrada Technologies divisions. The Genefic division processes molecular diagnostic and antibody tests to support the diagnosis of COVID-19 and the detection of immune response to the virus; markets and sells traditional biologics and human cells, tissues, and cellular and tissue-based products; and provides prescription management, education, nursing, and total health solutions; distributes alcohol-free hand sanitizers, surface cleaners, laundry aides, antimicrobial solutions, electrostatic sprayers, face masks, gloves, and kits, as well as dispensers, stands, and ease of use packaging for the end consumers. It also manages and oversees wellness and rejuvenation clinics throughout Southern California that offers regenerative therapies, IV and injection services, cosmetic enhancements, and other health centric services; and provides trained nursing and medical assistants for hospitals and home health facilities, as well as pharmacy services. The Dalrada Energy Services division offers energy service solutions and general contracting services. The Dalrada Precision Manufacturing division engages in developing heat pump technology solution for the harvesting and recycling of energy; and manufactures and sells deep cleaners, parts washers, and degreasers to lift hydrocarbon-based dirt and grease from surfaces. It also designs, develops, manufactures, and services chemical and physical vapor deposition systems for the microchip and semiconductor industries. The Dalrada Technologies division provides software and technology solutions specialize in test engineering, accessibility engineering, product engineering, and application modernization. The company was incorporated in 1982 and is headquartered in Escondido, California.