Financial Analysis: Primech (NASDAQ:PMEC) & Sodexo (OTCMKTS:SDXAY)

Primech (NASDAQ:PMEC) and Sodexo (OTCMKTS:SDXAY) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares Primech and Sodexo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primech	$74.35 million	0.38	-$1.94 million	N/A	N/A
Sodexo	$26.49 billion	0.32	$765.33 million	N/A	N/A

Sodexo has higher revenue and earnings than Primech.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Primech and Sodexo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primech	1	0	0	0	1.00
Sodexo	1	5	1	0	2.00

Profitability

This table compares Primech and Sodexo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Primech	N/A	N/A	N/A
Sodexo	N/A	N/A	N/A

Insider & Institutional Ownership

88.1% of Primech shares are held by institutional investors. 1.0% of Sodexo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Primech has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Sodexo has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Summary

Sodexo beats Primech on 5 of the 8 factors compared between the two stocks.

About Primech

Primech Holdings Ltd. provides facilities and stewarding services in the public and private sectors in Singapore. Its facilities services include educational institutions cleaning, airport cleaning, and conservancy areas cleaning services, as well as offers cleaning of hotels, public spaces, roads, condominium, office, industrial, and retail stores. The company offers housekeeping services; specialized cleaning services, including marble polishing, building façade cleaning, and clean room sanitation services; and waste management and pest control services. In addition, it provides stewarding services comprising cleaning of the kitchen area of healthcare facilities, hotels, and restaurants, as well as supplies ad hoc customer service officers, and food and beverage service crews to healthcare facilities, hotels, and restaurants. Further, the company operates HomeHelpy, an online portal that allows individual customers to book cleaning services in homes and offices; and manufactures and sells cleaning supplies, such as hand soaps, hand soap dispensers, cleaning fluids, and garbage bags used for general, floor, carpet, restroom, or kitchen purposes, as well as treatment products used in the marine industry under the D’Bond brand name. The company was incorporated in 2020 and is based in Singapore. Primech Holdings Ltd. is a subsidiary of Sapphire Universe Holdings Limited.

About Sodexo

Sodexo S.A. provides food services and facilities management services worldwide. It offers various on-site services, which includes corporate services, energy and resources, government and agencies, and other services; healthcare and seniors; and learning solutions to schools and universities. The company also provides food services comprising retail service, food delivery, and meal and food vouchers, as well as digital food ordering services; savings and purchase solutions, data and digital tools, and advisory services and client support; and work-life balance and employee experience solutions. In addition, it offers facility management services, including technical service management, assets management, building maintenance, access control, deep cleaning, energy management, space planning, project management, front-of-house services, grounds maintenance, waste management, HVAC systems, mail management, commercial cleaning, workspace management, and pest control. services. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.