Reviewing BGSF (NYSE:BGSF) & Premium Catering (NASDAQ:PC)

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

Analyst Ratings

This is a summary of current recommendations and price targets for BGSF and Premium Catering, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BGSF	1	1	1	1	2.50
Premium Catering	1	0	0	0	1.00

BGSF currently has a consensus target price of $9.00, suggesting a potential upside of 164.71%. Given BGSF’s stronger consensus rating and higher probable upside, equities analysts clearly believe BGSF is more favorable than Premium Catering.

Profitability

This table compares BGSF and Premium Catering’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BGSF	-2.81%	-9.06%	-4.84%
Premium Catering	N/A	N/A	N/A

Insider & Institutional Ownership

37.2% of BGSF shares are owned by institutional investors. 8.0% of BGSF shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares BGSF and Premium Catering”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BGSF	$272.50 million	0.14	-$3.34 million	($0.58)	-5.86
Premium Catering	$3.81 million	5.11	-$1.08 million	N/A	N/A

Premium Catering has lower revenue, but higher earnings than BGSF.

Summary

BGSF beats Premium Catering on 7 of the 12 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 Premium Catering

Premium Catering (Holdings) Limited, through its subsidiary, engages in the business of food catering for function, events, and workers in Singapore. The company provides Halal food in Indian, Bangladesh, and Chinese cuisine to foreign workers, students, and other individuals residing in dormitories, as well foreign workers in the marine, logistics, and poultry industries. It also operates a central kitchen under the Premium Catering brand name to supply budget prepared meals to foreign construction workers; operates food stalls; and provides buffet catering services for private functions, and corporate and community events, as well as provides ancillary delivery services. The company was founded in 2012 and is based in Singapore. Premium Catering (Holdings) Limited operates as a subsidiary of Hero Global Enterprises Limited.