Itex (OTCMKTS:ITEX) and BGSF (NYSE:BGSF) Critical Review

BGSF (NYSE:BGSF) and Itex (OTCMKTS:ITEX) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Profitability

This table compares BGSF and Itex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BGSF	-2.81%	-9.06%	-4.84%
Itex	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for BGSF and Itex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BGSF	1	1	1	1	2.50
Itex	0	0	0	0	0.00

BGSF presently has a consensus price target of $9.00, suggesting a potential upside of 160.87%. Given BGSF’s stronger consensus rating and higher possible upside, equities analysts plainly believe BGSF is more favorable than Itex.

Volatility & Risk

BGSF has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Itex has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Institutional and Insider Ownership

37.2% of BGSF shares are owned by institutional investors. 8.0% of BGSF shares are owned by insiders. Comparatively, 32.0% of Itex shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares BGSF and Itex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BGSF	$272.50 million	0.14	-$3.34 million	($0.58)	-5.95
Itex	$5.44 million	0.87	$500,000.00	N/A	N/A

Itex has lower revenue, but higher earnings than BGSF.

Summary

BGSF beats Itex on 7 of the 13 factors compared between the two stocks.

About BGSF

BGSF, Inc., together with its subsidiaries, provides consulting, managed services, and professional workforce solutions in the United States. It operates in two segments, Property Management and Professional. The Property Management segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, management services, and other IT workforce solutions. This segment also offers finance, accounting, legal, human resource, and related support personnel. It serves its products to fortune 500 companies, and medium and small companies, as well as consulting companies. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.

About Itex

ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company’s marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.