BGSF (NYSE:BGSF) versus Atlantic International (NASDAQ:ATLN) Critical Analysis

BGSF (NYSE:BGSF) and Atlantic International (NASDAQ:ATLN) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for BGSF and Atlantic International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BGSF	1	1	1	1	2.50
Atlantic International	1	1	0	1	2.33

BGSF currently has a consensus price target of $9.00, indicating a potential upside of 104.36%. Given BGSF’s stronger consensus rating and higher possible upside, analysts clearly believe BGSF is more favorable than Atlantic International.

Profitability

This table compares BGSF and Atlantic International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BGSF	-6.32%	-13.16%	-7.20%
Atlantic International	-22.66%	-3,234.95%	-90.47%

Risk and Volatility

BGSF has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Atlantic International has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Valuation and Earnings

This table compares BGSF and Atlantic International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BGSF	$272.50 million	0.18	-$3.34 million	($1.03)	-4.28
Atlantic International	$442.61 million	0.30	-$135.48 million	($2.24)	-1.01

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

Insider & Institutional Ownership

37.2% of BGSF shares are held by institutional investors. 8.0% of BGSF shares are held by insiders. Comparatively, 13.6% of Atlantic International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

BGSF beats Atlantic International on 10 of the 14 factors compared between the two stocks.

About BGSF

BGSF, Inc., together with its subsidiaries, provides consulting, managed services, and professional workforce solutions in the United States. It operates in two segments, Property Management and Professional. The Property Management segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, management services, and other IT workforce solutions. This segment also offers finance, accounting, legal, human resource, and related support personnel. It serves its products to fortune 500 companies, and medium and small companies, as well as consulting companies. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.

About Atlantic International

Atlantic International Corp. engages in the design, development, and manufacture of genetic analysis technologies. Its services include RNA sequencing and DNA sequencing. The company was founded by William C. St. Laurent and Daniel R. Jones in 2013 and is headquartered in Billercia, MA.