BGSF, Inc. (BGSF) vs HireQuest, Inc. (HQI)

BGSF, Inc. and HireQuest, Inc. are both Staffing & Employment Services companies. HireQuest, Inc. is the larger, with a market value of $260.6M against $53.4M — 4.9× the size. BGSF, Inc. has negative trailing earnings, so its P/E is not meaningful; HireQuest, Inc. trades at 34.0×. BGSF, Inc. grew revenue faster over the last twelve months: 69.6% against −7.53%. HireQuest, Inc. has the higher net margin (27.1% vs −8.99%) and the higher return on invested capital (7.97% vs −13.3%). Both pay a dividend; BGSF, Inc. yields more (5.87% vs 1.87%). Across the 19 metrics below, HireQuest, Inc. leads on 13 and BGSF, Inc. on 6.

Valuation

Metric BGSF HQI Staffing & Employment Services median
P/E n/m 33.97 24.32
P/S 0.57 9.16 0.41
P/B 1.15 4.01 1.28
Price to free cash flow n/m 30.69 18.57
EV/EBITDA n/m 23.50 10.55
EV/Sales 0.88 9.61 0.40
Earnings yield (14.80%) 2.94% 0.99%
Free cash flow yield (6.49%) 3.26% 2.79%

Profitability

Metric BGSF HQI Staffing & Employment Services median
Gross margin 35.49% 100.00% 23.11%
Operating margin (6.40%) 28.44% 0.08%
Net margin (8.99%) 27.06% 0.23%
Free cash flow margin (3.73%) 31.32% 1.23%
Return on equity (13.31%) 12.10% 2.31%
Return on assets (8.17%) 8.69% 0.00%
Return on invested capital (13.25%) 7.97% 0.00%

Growth

Metric BGSF HQI Staffing & Employment Services median
Revenue growth (TTM) 69.64% (7.53%) 0.69%
EPS growth (last fiscal year) (235.48%) 73.08% —
Revenue growth, 5-year CAGR (14.74%) 17.28% 1.23%
Net income growth, 5-year CAGR 0.00% 3.38% 0.00%

Health

Metric BGSF HQI Staffing & Employment Services median
Debt to equity 0.00 0.00 0.08
Current ratio 5.11 2.74 1.50
Net debt to EBITDA 3.00 (0.39) (0.22)

Dividend

Metric BGSF HQI Staffing & Employment Services median
Dividend yield 5.87% 1.87% 2.16%
Payout ratio 0.43 0.30 0.30

Size

Metric BGSF HQI Staffing & Employment Services median
Market cap 53.40m 260.62m 590.17m

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