Head-To-Head Contrast: First Advantage (NYSE:FA) & BGSF (NYSE:BGSF)

First Advantage (NYSE:FA) and BGSF (NYSE:BGSF) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Insider and Institutional Ownership

94.9% of First Advantage shares are owned by institutional investors. Comparatively, 37.2% of BGSF shares are owned by institutional investors. 4.4% of First Advantage shares are owned by company insiders. Comparatively, 7.1% of BGSF shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

First Advantage has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, BGSF has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Profitability

This table compares First Advantage and BGSF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Advantage	0.65%	13.16%	7.33%
BGSF	-2.35%	-7.24%	-6.23%

Analyst Recommendations

This is a breakdown of current recommendations for First Advantage and BGSF, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Advantage	0	4	3	0	2.43
BGSF	1	0	0	0	1.00

First Advantage currently has a consensus price target of $25.00, indicating a potential upside of 15.85%. Given First Advantage’s stronger consensus rating and higher probable upside, analysts clearly believe First Advantage is more favorable than BGSF.

Earnings and Valuation

This table compares First Advantage and BGSF”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Advantage	$1.72 billion	2.16	$37.29 million	$0.25	86.32
BGSF	$93.31 million	0.47	-$11.43 million	($0.19)	-21.54

First Advantage has higher revenue and earnings than BGSF. BGSF is trading at a lower price-to-earnings ratio than First Advantage, indicating that it is currently the more affordable of the two stocks.

Summary

First Advantage beats BGSF on 13 of the 14 factors compared between the two stocks.

About First Advantage

First Advantage provides technology-enabled background screening and verification services to employers and other organizations. Its offerings include criminal-record searches, employment and education verification, identity checks, drug and health screening, and related compliance services used in hiring and workforce management. The company serves customers across North America and international markets, including businesses that need screening processes across multiple locations. Its services are designed to help organizations assess candidates and manage workplace-related risks.

About BGSF

BGSF Inc. is a workforce solutions and professional services company that provides staffing, consulting and managed services to businesses across several industries. The company helps clients address temporary, contract, direct-hire and project-based workforce needs through specialized personnel and service offerings. BGSF operates through professional staffing and property management services. Its professional services include information technology staffing and consulting, finance and accounting staffing, and other workforce solutions.