VSE (NASDAQ:VSEC) and SU Group (NASDAQ:SUGP) Financial Review

SU Group (NASDAQ:SUGP) and VSE (NASDAQ:VSEC) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Valuation and Earnings

This table compares SU Group and VSE”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SU Group	$23.43 million	0.36	$1.37 million	N/A	N/A
VSE	$1.33 billion	3.01	$15.32 million	$0.68	255.91

VSE has higher revenue and earnings than SU Group.

Profitability

This table compares SU Group and VSE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SU Group	N/A	N/A	N/A
VSE	1.23%	7.64%	4.52%

Institutional & Insider Ownership

68.1% of SU Group shares are owned by institutional investors. Comparatively, 91.5% of VSE shares are owned by institutional investors. 14.6% of VSE shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

SU Group has a beta of 2.79, meaning that its share price is 179% more volatile than the S&P 500. Comparatively, VSE has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for SU Group and VSE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SU Group	1	0	0	0	1.00
VSE	0	1	6	0	2.86

VSE has a consensus target price of $197.17, suggesting a potential upside of 13.30%. Given VSE’s stronger consensus rating and higher probable upside, analysts plainly believe VSE is more favorable than SU Group.

Summary

VSE beats SU Group on 11 of the 12 factors compared between the two stocks.

About SU Group

SU Group Holdings Limited, through its subsidiaries, operates as an integrated security-related services company in Hong Kong and internationally. The company operates through two segments, Security-Related Engineering Services Business; and Security Guarding and Screening Services Business. It primarily provides security-related engineering, security guarding and screening, and related vocational training services. The company also engages in the design, supply, installation, maintenance, and testing and commissioning of various security systems. In addition, it offers threat detection systems, including X-ray machines, trace detection products, metal detectors, and mail screening machines; traffic and pedestrian control systems, such as traffic control system, automatic fare control systems, turnstiles, automatic door system, and people counting systems; and extra-low voltage systems comprising closed-circuit television, access control, public address, and building management systems to commercial properties, public facilities, and residential properties. Further, the company provides screening services, such as the detection of explosives, and incendiary devices in air cargo consignment and detection of dangerous goods through threat detection systems by screeners; and training courses for basic security services, mandatory basic safety, and training revalidation courses. Additionally, it offers equipment leasing services. The company was founded in 1998 and is headquartered in Kwun Tong, Hong Kong. SU Group Holdings Limited operates as a subsidiary of Exceptional Engineering Limited.

About VSE

VSE Corporation operates as a diversified aftermarket products and services company in the United States. The company operates through two segments, Aviation and Fleet. The Aviation segment provides aftermarket parts supply and distribution; maintenance, repair, and overhaul services for components and engine accessories supporting commercial, business, and general aviation operators. This segment serves commercial airlines, regional airlines, cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators. The Fleet segment offers parts supply, inventory management, e-commerce fulfillment, logistics, supply chain support, and other services to support the commercial aftermarket medium- and heavy-duty truck market. This segment also provides sale of vehicle parts and supply chain services to support client truck fleets, as well as sustainment solutions and managed inventory services to government and commercial truck fleets. VSE Corporation was incorporated in 1959 and is headquartered in Alexandria, Virginia.