Critical Analysis: DHI Group (NYSE:DHX) versus UMeWorld (OTCMKTS:UMEWF)

DHI Group (NYSE:DHX) and UMeWorld (OTCMKTS:UMEWF) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

69.3% of DHI Group shares are owned by institutional investors. 16.2% of DHI Group shares are owned by company insiders. Comparatively, 6.0% of UMeWorld shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares DHI Group and UMeWorld’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DHI Group	-1.78%	11.60%	5.77%
UMeWorld	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for DHI Group and UMeWorld, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHI Group	1	2	1	0	2.00
UMeWorld	0	0	0	0	0.00

DHI Group presently has a consensus price target of $6.50, suggesting a potential upside of 85.56%. Given DHI Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe DHI Group is more favorable than UMeWorld.

Risk and Volatility

DHI Group has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, UMeWorld has a beta of -1.85, indicating that its stock price is 285% less volatile than the S&P 500.

Valuation and Earnings

This table compares DHI Group and UMeWorld”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHI Group	$127.83 million	1.18	-$13.51 million	($0.05)	-70.06
UMeWorld	N/A	N/A	-$260,000.00	N/A	N/A

UMeWorld has lower revenue, but higher earnings than DHI Group.

Summary

DHI Group beats UMeWorld on 9 of the 11 factors compared between the two stocks.

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.

About UMeWorld

UMeWorld Limited, an integrated edible oil company, engages in the production of diacylglycerol) oil, palm oil, and oil palm derivative products. The company was formerly known as AlphaRx, Inc. and changed its name to UMeWorld Limited in March 2013. UMeWorld Limited was incorporated in 1997 and is based in Miami, Florida.