Document Security Systems (NYSEAMERICAN:DSS) and PRGX Global (NASDAQ:PRGX) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Document Security Systems and PRGX Global, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Document Security Systems | 0 | 0 | 1 | 0 | 3.00 |
PRGX Global | 0 | 2 | 0 | 0 | 2.00 |
Document Security Systems presently has a consensus price target of $14.00, suggesting a potential upside of 330.77%. PRGX Global has a consensus price target of $9.00, suggesting a potential upside of 16.88%. Given Document Security Systems' stronger consensus rating and higher probable upside, research analysts plainly believe Document Security Systems is more favorable than PRGX Global.
Profitability
This table compares Document Security Systems and PRGX Global's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Document Security Systems | 9.53% | -15.58% | -12.31% |
PRGX Global | -2.95% | 10.13% | 4.25% |
Institutional and Insider Ownership
3.5% of Document Security Systems shares are owned by institutional investors. Comparatively, 64.6% of PRGX Global shares are owned by institutional investors. 33.4% of Document Security Systems shares are owned by company insiders. Comparatively, 18.6% of PRGX Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Document Security Systems and PRGX Global's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Document Security Systems | $19.41 million | 2.26 | $-2,890,000.00 | ($3.30) | -0.98 |
PRGX Global | $169.76 million | 1.07 | $-13,720,000.00 | ($0.18) | -42.78 |
Document Security Systems has higher earnings, but lower revenue than PRGX Global. PRGX Global is trading at a lower price-to-earnings ratio than Document Security Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Document Security Systems has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500. Comparatively, PRGX Global has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.
Summary
Document Security Systems beats PRGX Global on 9 of the 14 factors compared between the two stocks.