Healthcare Services Group (NASDAQ:HCSG) vs. HomeServe (OTCMKTS:HMSVY) Critical Analysis

Healthcare Services Group (NASDAQ:HCSG) and HomeServe (OTCMKTS:HMSVY) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Profitability

This table compares Healthcare Services Group and HomeServe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Services Group	6.59%	18.97%	11.96%
HomeServe	N/A	N/A	N/A

Institutional & Insider Ownership

98.0% of Healthcare Services Group shares are owned by institutional investors. Comparatively, 0.0% of HomeServe shares are owned by institutional investors. 2.9% of Healthcare Services Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Healthcare Services Group and HomeServe”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Services Group	$1.84 billion	0.82	$59.06 million	$1.72	12.78
HomeServe	N/A	N/A	N/A	N/A	N/A

Healthcare Services Group has higher revenue and earnings than HomeServe.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Healthcare Services Group and HomeServe, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Services Group	0	2	6	1	2.89
HomeServe	0	0	0	0	0.00

Healthcare Services Group presently has a consensus target price of $26.50, suggesting a potential upside of 20.51%. Given Healthcare Services Group’s stronger consensus rating and higher possible upside, analysts plainly believe Healthcare Services Group is more favorable than HomeServe.

Summary

Healthcare Services Group beats HomeServe on 10 of the 10 factors compared between the two stocks.

About Healthcare Services Group

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment provides food purchasing, meal preparation, and professional dietitian services, which include the development of menus that meet the dietary needs of residents; and on-site management and clinical consulting services to facilities. It serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. The company was incorporated in 1976 and is based in Bensalem, Pennsylvania.

About HomeServe

HomeServe Plc engages in the provision of home emergency and repair services. It operates through the Membership & Heating, Ventilation and Air Conditioning and Home Experts segments. The company was founded by Richard David Harpin and Jeremy Peter Middleton in 1993 and is headquartered in Walsall, the United Kingdom.