Information Services Group (NASDAQ:III) and Atlas Technical Consultants (NASDAQ:ATCX) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Profitability
This table compares Information Services Group and Atlas Technical Consultants' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Information Services Group | 1.37% | 8.44% | 3.44% |
| Atlas Technical Consultants | N/A | -2.76% | 0.80% |
Valuation and Earnings
This table compares Information Services Group and Atlas Technical Consultants' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Information Services Group | $265.76 million | 0.99 | $3.34 million | $0.16 | 34.25 |
| Atlas Technical Consultants | N/A | N/A | $-350,000.00 | ($0.52) | -21.71 |
Information Services Group has higher revenue and earnings than Atlas Technical Consultants. Atlas Technical Consultants is trading at a lower price-to-earnings ratio than Information Services Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
48.3% of Information Services Group shares are held by institutional investors. Comparatively, 7.5% of Atlas Technical Consultants shares are held by institutional investors. 15.0% of Information Services Group shares are held by company insiders. Comparatively, 18.3% of Atlas Technical Consultants shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Information Services Group and Atlas Technical Consultants, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Information Services Group | 0 | 1 | 1 | 0 | 2.50 |
| Atlas Technical Consultants | 0 | 0 | 2 | 0 | 3.00 |
Information Services Group presently has a consensus price target of $5.30, indicating a potential downside of 3.28%. Atlas Technical Consultants has a consensus price target of $12.25, indicating a potential upside of 8.50%. Given Atlas Technical Consultants' stronger consensus rating and higher possible upside, analysts clearly believe Atlas Technical Consultants is more favorable than Information Services Group.
Volatility and Risk
Information Services Group has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Atlas Technical Consultants has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.
Summary
Information Services Group beats Atlas Technical Consultants on 9 of the 13 factors compared between the two stocks.
