Financial Analysis: Premium Catering (NASDAQ:PC) vs. Healthcare Services Group (NASDAQ:HCSG)

Premium Catering (NASDAQ:PC) and Healthcare Services Group (NASDAQ:HCSG) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Premium Catering and Healthcare Services Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Premium Catering	1	0	0	0	1.00
Healthcare Services Group	0	4	3	0	2.43

Healthcare Services Group has a consensus target price of $19.40, suggesting a potential downside of 0.15%. Given Healthcare Services Group’s stronger consensus rating and higher possible upside, analysts plainly believe Healthcare Services Group is more favorable than Premium Catering.

Institutional & Insider Ownership

98.0% of Healthcare Services Group shares are held by institutional investors. 2.1% of Healthcare Services Group 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.

Volatility and Risk

Premium Catering has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Healthcare Services Group has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Profitability

This table compares Premium Catering and Healthcare Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Premium Catering	N/A	N/A	N/A
Healthcare Services Group	2.20%	12.23%	7.52%

Earnings and Valuation

This table compares Premium Catering and Healthcare Services Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Premium Catering	$3.35 million	5.81	-$4.24 million	N/A	N/A
Healthcare Services Group	$1.72 billion	0.80	$39.47 million	$0.54	35.98

Healthcare Services Group has higher revenue and earnings than Premium Catering.

Summary

Healthcare Services Group beats Premium Catering on 10 of the 12 factors compared between the two stocks.

About Premium Catering

Premium Catering (Holdings) Limited, through its subsidiary, engages in the business of food catering for function, events, and workers in Singapore. The company provides Halal food in Indian, Bangladesh, and Chinese cuisine to foreign workers, students, and other individuals residing in dormitories, as well foreign workers in the marine, logistics, and poultry industries. It also operates a central kitchen under the Premium Catering brand name to supply budget prepared meals to foreign construction workers; operates food stalls; and provides buffet catering services for private functions, and corporate and community events, as well as provides ancillary delivery services. The company was founded in 2012 and is based in Singapore. Premium Catering (Holdings) Limited operates as a subsidiary of Hero Global Enterprises Limited.

About Healthcare Services Group

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment provides food purchasing, meal preparation, and professional dietitian services, which include the development of menus that meet the dietary needs of residents; and on-site management and clinical consulting services to facilities. It serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. The company was incorporated in 1976 and is based in Bensalem, Pennsylvania.