Head-To-Head Analysis: SPAR Group (NASDAQ:SGRP) and QuinStreet (NASDAQ:QNST)

SPAR Group (NASDAQ:SGRP) and QuinStreet (NASDAQ:QNST) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SPAR Group and QuinStreet, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SPAR Group 0 0 0 0 N/A
QuinStreet 0 0 6 0 3.00

QuinStreet has a consensus price target of $18.50, indicating a potential upside of 48.65%. Given QuinStreet’s higher probable upside, analysts clearly believe QuinStreet is more favorable than SPAR Group.

Risk & Volatility

SPAR Group has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, QuinStreet has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Institutional & Insider Ownership

5.9% of SPAR Group shares are held by institutional investors. Comparatively, 97.4% of QuinStreet shares are held by institutional investors. 63.9% of SPAR Group shares are held by insiders. Comparatively, 11.1% of QuinStreet shares are held by 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 SPAR Group and QuinStreet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SPAR Group 0.93% 12.56% 4.34%
QuinStreet 13.73% 6.53% 4.61%

Valuation and Earnings

This table compares SPAR Group and QuinStreet’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SPAR Group $229.19 million 0.10 -$1.55 million N/A N/A
QuinStreet $455.15 million 1.40 $62.48 million $1.18 10.55

QuinStreet has higher revenue and earnings than SPAR Group.

Summary

QuinStreet beats SPAR Group on 10 of the 12 factors compared between the two stocks.

About SPAR Group

SPAR Group, Inc., together with its subsidiaries, provides merchandising and marketing services worldwide. The company offers syndicated services, such as product reordering and replenishment; ensuring its products for distribution; adding new products; implementing store planogram schematics; setting product category shelves; ensuring that product shelf tags are in place; checking for salability of the clients' products; placing new product and promotional items in prominent positions; and kiosk replenishment and maintenance services for retailers, manufacturers, and distributors. It also provides dedicated services, including syndicated services, as well as new store set-up, store remodel, and fixture installation services for a specific retailer or manufacturer. In addition, the company offers project services comprising specific in-store services initiated by retailers and manufacturers, such as new store openings, new product launches, special seasonal or promotional merchandising, focused product support, product recalls, and in-store product demonstration and sampling, as well as performs kiosk product replenishment, inventory control, new store sets and existing store resets, re-merchandising, remodels and category implementation, and under annual or stand-alone project contracts or agreements. Further, it assembles furniture, grills, and various other products in stores, homes, and offices; and offers in-store event staffing, retail compliance and price audit, mystery shopping, and data collection services. The company serves mass merchandisers; pharmacies; Pharmacies; grocery, office supply, dollar, convenience, specialty, electronic, and home improvement stores; and other retail outlets. SPAR Group, Inc. was founded in 1967 and is headquartered in White Plains, New York.

About QuinStreet

QuinStreet, Inc., an Internet performance marketing company, provides customer acquisition services for its clients in the United States and internationally. It offers online marketing services to its clients in the form of qualified leads, inquiries, clicks, calls, applications, customers, display advertisements, or impressions through its Websites or third-party publishers. The company provides its services in various verticals, such as financial services, education, business-to-business technology, and home services. QuinStreet, Inc. was founded in 1999 and is headquartered in Foster City, California.

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