Black Diamond Group (OTCMKTS:BDIMF – Get Free Report) and BGSF (NYSE:BGSF – Get Free Report) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.
Insider & Institutional Ownership
37.2% of BGSF shares are owned by institutional investors. 25.2% of Black Diamond Group shares are owned by insiders. Comparatively, 8.0% of BGSF shares are owned 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.
Analyst Recommendations
This is a summary of recent ratings and price targets for Black Diamond Group and BGSF, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Black Diamond Group | 0 | 0 | 1 | 0 | 3.00 |
| BGSF | 1 | 1 | 1 | 1 | 2.50 |
Volatility & Risk
Black Diamond Group has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, BGSF has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.
Dividends
Black Diamond Group pays an annual dividend of $0.10 per share and has a dividend yield of 1.0%. BGSF pays an annual dividend of $0.60 per share and has a dividend yield of 13.5%. Black Diamond Group pays out 24.4% of its earnings in the form of a dividend. BGSF pays out -58.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BGSF is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Black Diamond Group and BGSF’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Black Diamond Group | 8.23% | 10.76% | 4.79% |
| BGSF | -6.32% | -13.16% | -7.20% |
Earnings & Valuation
This table compares Black Diamond Group and BGSF”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Black Diamond Group | $294.14 million | 2.38 | $18.72 million | $0.41 | 24.95 |
| BGSF | $263.69 million | 0.19 | -$3.34 million | ($1.03) | -4.31 |
Black Diamond Group has higher revenue and earnings than BGSF. BGSF is trading at a lower price-to-earnings ratio than Black Diamond Group, indicating that it is currently the more affordable of the two stocks.
Summary
Black Diamond Group beats BGSF on 11 of the 16 factors compared between the two stocks.
About Black Diamond Group
Black Diamond Group Limited rents and sells modular space and workforce accommodation solutions. It operates through two segments, Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment provides modular space rentals to customers in the construction, real estate development, education, manufacturing, health care, financial, government, and defense industries in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, banking and health care facilities, high security modular buildings, custom manufactured modular facilities, blast resistant structures, SmartSpace interchangeable paneled units, and storage containers. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary rental items, products, and services. The Workforce Solutions segment provides workforce housing solutions, including rental of accommodations and surface equipment, and provision of turnkey lodging and travel management logistics services in Canada, the United States, and Australia. This segment also provides associated services, such as installation, transportation, dismantlement, and sale of used fleet assets. This segment primarily serves the resource, infrastructure, construction, disaster recovery, and education sectors. It also provides specialized field rentals to oil and gas industries. The company markets its rental assets, custom sales, and ancillary products and services through in-house sales personnel, its website, social media, web campaigns, and its digital marketplace. Black Diamond Group Limited was founded in 2003 and is headquartered in Calgary, Canada.
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.
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