Analyzing Upwork (NASDAQ:UPWK) and Where Food Comes From (NASDAQ:WFCF)

Where Food Comes From (NASDAQ:WFCF) and Upwork (NASDAQ:UPWK) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Volatility & Risk

Where Food Comes From has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, Upwork has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Profitability

This table compares Where Food Comes From and Upwork’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Where Food Comes From	5.78%	15.39%	10.24%
Upwork	13.53%	16.92%	8.79%

Analyst Recommendations

This is a summary of current recommendations and price targets for Where Food Comes From and Upwork, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Where Food Comes From	0	1	0	0	2.00
Upwork	0	10	3	0	2.23

Upwork has a consensus price target of $13.55, indicating a potential upside of 35.03%. Given Upwork’s stronger consensus rating and higher probable upside, analysts clearly believe Upwork is more favorable than Where Food Comes From.

Institutional and Insider Ownership

18.8% of Where Food Comes From shares are held by institutional investors. Comparatively, 77.7% of Upwork shares are held by institutional investors. 53.5% of Where Food Comes From shares are held by company insiders. Comparatively, 4.9% of Upwork shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Where Food Comes From and Upwork”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Where Food Comes From	$24.89 million	3.41	$1.54 million	$0.28	60.80
Upwork	$787.78 million	1.60	$115.43 million	$0.81	12.39

Upwork has higher revenue and earnings than Where Food Comes From. Upwork is trading at a lower price-to-earnings ratio than Where Food Comes From, indicating that it is currently the more affordable of the two stocks.

Summary

Upwork beats Where Food Comes From on 10 of the 14 factors compared between the two stocks.

About Where Food Comes From

Where Food Comes From, Inc. provides verification, certification, and traceability services for the agricultural and food industries. The company helps producers, processors, retailers, and food brands substantiate claims about how products are raised, grown, sourced, and handled throughout the supply chain. Its services include source and origin verification, sustainability and production-practice audits, animal welfare assessments, organic and non-GMO certification support, and supply-chain data and traceability solutions.

About Upwork

Upwork operates an online marketplace that connects businesses with independent professionals and agencies for contract and project-based work. The platform supports hiring across areas such as software development, design, marketing, writing, customer service and consulting. Its services include the Talent Marketplace, where clients can find and hire professionals, and Project Catalog, which offers predefined services with set scopes. Upwork also provides solutions for larger organizations seeking to source and manage freelance talent.