Information Services Group (NASDAQ:III) and Mastech Digital (NYSEAMERICAN:MHH) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.
Risk and Volatility
Information Services Group has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Mastech Digital has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.
Valuation and Earnings
This table compares Information Services Group and Mastech Digital's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Information Services Group | $265.76 million | 0.68 | $3.34 million | $0.16 | 23.50 |
Mastech Digital | $193.57 million | 1.02 | $11.15 million | $0.99 | 17.54 |
Mastech Digital has lower revenue, but higher earnings than Information Services Group. Mastech Digital 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.
Profitability
This table compares Information Services Group and Mastech Digital's 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% |
Mastech Digital | 5.16% | 22.53% | 12.95% |
Analyst Ratings
This is a breakdown of current recommendations for Information Services Group and Mastech Digital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Information Services Group | 0 | 1 | 2 | 0 | 2.67 |
Mastech Digital | 0 | 0 | 0 | 0 | N/A |
Information Services Group presently has a consensus target price of $3.5750, indicating a potential downside of 4.92%. Given Information Services Group's higher probable upside, research analysts plainly believe Information Services Group is more favorable than Mastech Digital.
Insider & Institutional Ownership
48.3% of Information Services Group shares are held by institutional investors. Comparatively, 16.7% of Mastech Digital shares are held by institutional investors. 15.0% of Information Services Group shares are held by insiders. Comparatively, 63.3% of Mastech Digital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Mastech Digital beats Information Services Group on 7 of the 13 factors compared between the two stocks.