SPAR Group (NASDAQ:SGRP) and WNS (NYSE:WNS) Financial Contrast

SPAR Group (NASDAQ:SGRP) and WNS (NYSE:WNS) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

SPAR Group has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500. Comparatively, WNS has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

9.6% of SPAR Group shares are held by institutional investors. Comparatively, 97.4% of WNS shares are held by institutional investors. 50.9% of SPAR Group shares are held by company insiders. Comparatively, 2.0% of WNS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares SPAR Group and WNS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SPAR Group	-3.78%	-18.99%	-7.40%
WNS	12.11%	22.90%	12.02%

Analyst Ratings

This is a summary of current ratings and recommmendations for SPAR Group and WNS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPAR Group	1	0	0	0	1.00
WNS	0	7	1	0	2.13

WNS has a consensus price target of $72.80, indicating a potential downside of 4.18%. Given WNS’s stronger consensus rating and higher possible upside, analysts plainly believe WNS is more favorable than SPAR Group.

Valuation and Earnings

This table compares SPAR Group and WNS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPAR Group	$163.63 million	0.15	-$3.15 million	$0.51	2.09
WNS	$1.35 billion	2.42	$170.11 million	$3.59	21.16

WNS has higher revenue and earnings than SPAR Group. SPAR Group is trading at a lower price-to-earnings ratio than WNS, indicating that it is currently the more affordable of the two stocks.

Summary

WNS beats SPAR Group on 13 of the 14 factors compared between the two stocks.

About SPAR Group

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.

About WNS

WNS (Holdings) Limited, a business process management (BPM) company, provides data, voice, analytical, and business transformation services worldwide. The company operates through TSLU, MRHP, HCLS, and BFSI segments. It engages in diversified business, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunication; travel and leisure, utilities, shipping, and logistics; healthcare and life sciences; banking, financial services, and insurance; and Hi-tech and professional services, as well as procurement. In addition, the company provides a range of services, such as finance and accounting, customer experience, research and analytics, technology, legal, and human resources outsourcing services. Further, it offers digital transformation and consulting services designed to allow its clients to enhance productivity, manage changes in the business environment, and leverage business knowledge to increase market competitiveness. Additionally, the company provides claims handling and repair management services for automobile repairs through a network of third-party repair centers, as well as accident management services. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.