Head to Head Analysis: Healthcare Services Group (NASDAQ:HCSG) vs. E-Home Household Service (NASDAQ:EJH)

Healthcare Services Group (NASDAQ:HCSG) and E-Home Household Service (NASDAQ:EJH) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Profitability

This table compares Healthcare Services Group and E-Home Household Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Services Group	3.67%	17.81%	11.06%
E-Home Household Service	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for Healthcare Services Group and E-Home Household Service, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Services Group	0	5	4	0	2.44
E-Home Household Service	1	0	0	0	1.00

Healthcare Services Group currently has a consensus price target of $24.00, suggesting a potential downside of 4.57%. Given Healthcare Services Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Healthcare Services Group is more favorable than E-Home Household Service.

Insider & Institutional Ownership

98.0% of Healthcare Services Group shares are held by institutional investors. Comparatively, 37.3% of E-Home Household Service shares are held by institutional investors. 2.9% of Healthcare Services Group shares are held by insiders. Comparatively, 10.7% of E-Home Household Service shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Healthcare Services Group and E-Home Household Service”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Services Group	$1.85 billion	0.93	$59.06 million	$0.96	26.20
E-Home Household Service	$49.33 million	0.07	-$980,000.00	N/A	N/A

Healthcare Services Group has higher revenue and earnings than E-Home Household Service.

Volatility and Risk

Healthcare Services Group has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, E-Home Household Service has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Summary

Healthcare Services Group beats E-Home Household Service on 10 of the 12 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 E-Home Household Service

E-Home Household Service Holdings Limited, together with its subsidiaries, engages in the operation of household services in the People's Republic of China. The company operates through five segments: Installation and Maintenance, Housekeeping Services, Senior Care Services, Sales of Pharmaceutical Products, and Educational Consulting Services. It offers technical home installation and repair, and maintenance and other after sale services; housecleaning, nanny service, maternity matron, and personnel staffing; and heart rate test, daily step count, location and track record, call for help by WeChat or phone, and other care services for senior customers. The company provides its services through an online platform, as well as offline channels. Its customers primarily include individuals and families. E-Home Household Service Holdings Limited was founded in 2014 and is headquartered in Fuzhou, the People's Republic of China.