Head-To-Head Contrast: Galaxy Payroll Group (NASDAQ:GLXG) and Barrett Business Services (NASDAQ:BBSI)

Galaxy Payroll Group (NASDAQ:GLXG) and Barrett Business Services (NASDAQ:BBSI) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Profitability

This table compares Galaxy Payroll Group and Barrett Business Services’ 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
Barrett Business Services	4.49%	24.59%	7.27%

Risk and Volatility

Galaxy Payroll Group has a beta of -2.29, meaning that its share price is 329% less volatile than the S&P 500. Comparatively, Barrett Business Services has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Insider and Institutional Ownership

86.8% of Barrett Business Services shares are held by institutional investors. 4.1% of Barrett Business Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Galaxy Payroll Group and Barrett Business Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galaxy Payroll Group	$27.43 million	0.31	-$3.51 million	N/A	N/A
Barrett Business Services	$1.20 billion	0.79	$52.99 million	$2.03	18.24

Barrett Business Services has higher revenue and earnings than Galaxy Payroll Group.

Analyst Recommendations

This is a summary of current ratings for Galaxy Payroll Group and Barrett Business Services, 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
Barrett Business Services	0	0	3	0	3.00

Barrett Business Services has a consensus target price of $47.00, indicating a potential upside of 26.91%. Given Barrett Business Services’ stronger consensus rating and higher probable upside, analysts clearly believe Barrett Business Services is more favorable than Galaxy Payroll Group.

Summary

Barrett Business Services beats Galaxy Payroll Group on 12 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 Barrett Business Services

Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. The company develops a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. It offers professional employer services under which it enters into a client services agreement to establish a co-employment relationship with each client company, assuming responsibility for payroll, payroll taxes, workers compensation coverage, and other administration functions for the client’s existing workforce. The company provides staffing and recruiting services, such as on-demand or short-term staffing assignment, contract staffing, direct placement, and long-term or indefinite-term on-site management services. It serves electronics manufacturers, light-manufacturing industries, agriculture-based companies, transportation and shipping enterprises, food processors, telecommunications companies, public utilities, general contractors in various construction-related fields, restaurant franchises, and professional services firms. Barrett Business Services, Inc. was incorporated in 1965 and is headquartered in Vancouver, Washington.