Head to Head Review: Galaxy Payroll Group (NASDAQ:GLXG) vs. Professional Diversity Network (NASDAQ:IPDN)

Galaxy Payroll Group (NASDAQ:GLXG) and Professional Diversity Network (NASDAQ:IPDN) 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 profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Profitability

This table compares Galaxy Payroll Group and Professional Diversity Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galaxy Payroll Group	N/A	N/A	N/A
Professional Diversity Network	-67.01%	-81.86%	-49.49%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Galaxy Payroll Group and Professional Diversity Network, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galaxy Payroll Group	1	0	0	0	1.00
Professional Diversity Network	1	0	0	0	1.00

Volatility and Risk

Galaxy Payroll Group has a beta of -2.05, indicating that its share price is 305% less volatile than the S&P 500. Comparatively, Professional Diversity Network has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500.

Insider and Institutional Ownership

27.8% of Professional Diversity Network shares are held by institutional investors. 2.1% of Professional Diversity Network shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Galaxy Payroll Group and Professional Diversity Network”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galaxy Payroll Group	$27.43 million	0.26	-$3.51 million	N/A	N/A
Professional Diversity Network	$6.73 million	1.38	-$2.51 million	($2.00)	-0.96

Professional Diversity Network has lower revenue, but higher earnings than Galaxy Payroll Group.

Summary

Professional Diversity Network beats Galaxy Payroll Group on 5 of the 9 factors compared between the two stocks.

About Galaxy Payroll Group

Galaxy Payroll Group Limited, through its subsidiaries, provides payroll outsourcing, employment, and consultancy and market research services. It has operations in Hong Kong, Macau, the People’s Republic of China, Taiwan, Japan, Australia, Thailand, Malaysia, Vietnam, India, Indonesia, and the Philippines. The company was founded in 2013 and is based in Sheung Wan, Hong Kong.

About Professional Diversity Network

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. It operates through three segments: Professional Diversity Network (PDN Network), National Association of Professional Women (NAPW Network), and RemoteMore USA (RemoteMore). The company offers online professional job seeking communities that offers recruitment services, such as single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, hiring campaign marketing and advertising, e-newsletter marketing, and research and outreach services to various cultural groups and employers. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its websites; and contracted software development services. In addition, the company operates a women-only professional networking organization; and offers companies with talented engineers to provide solutions to their software needs. Professional Diversity Network, Inc. was incorporated in 2003 and is headquartered in Chicago, Illinois.