DHI Group (NYSE:DHX) and Galaxy Payroll Group (NASDAQ:GLXG) Critical Comparison

Galaxy Payroll Group (NASDAQ:GLXG) and DHI Group (NYSE:DHX) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Galaxy Payroll Group and DHI Group’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
DHI Group	0.97%	13.01%	6.46%

Risk & Volatility

Galaxy Payroll Group has a beta of -2.68, meaning that its share price is 368% less volatile than the S&P 500. Comparatively, DHI Group has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Insider & Institutional Ownership

69.3% of DHI Group shares are owned by institutional investors. 16.2% of DHI Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Galaxy Payroll Group and DHI Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galaxy Payroll Group	1	0	0	0	1.00
DHI Group	1	1	3	0	2.40

DHI Group has a consensus target price of $6.75, indicating a potential upside of 72.33%. Given DHI Group’s stronger consensus rating and higher possible upside, analysts plainly believe DHI Group is more favorable than Galaxy Payroll Group.

Earnings & Valuation

This table compares Galaxy Payroll Group and DHI Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galaxy Payroll Group	$27.74 million	0.24	-$3.51 million	N/A	N/A
DHI Group	$127.83 million	1.32	-$13.51 million	$0.03	130.57

Galaxy Payroll Group has higher earnings, but lower revenue than DHI Group.

Summary

DHI Group beats Galaxy Payroll Group on 11 of the 12 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 DHI Group

DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals and other select online communities in the United States. Its solutions include talent profiles; job postings; employer branding; and other services comprising virtual and live career events, sourcing services, and content and data services that provides tailored content to help professionals manage their careers and provide employers insight into recruiting strategies and trends. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and various other technology and engineering professionals; and ClearanceJobs, an online career community, which matches security-cleared professionals with employers in a secure and private environment to fill the jobs that safeguard its nation. It serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; staffing and consulting firms; and marketing departments of companies, as well as direct hiring companies. The company offers its products and services primarily through its direct sales force and agency partner channel. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1990 and is headquartered in Centennial, Colorado.