BGSF, Inc. (BGSF) vs Mastech Digital, Inc (MHH)

BGSF, Inc. and Mastech Digital, Inc are both Staffing & Employment Services companies. Mastech Digital, Inc is the larger, with a market value of $86.7M against $53.4M — 1.6× the size. BGSF, Inc. has negative trailing earnings, so its P/E is not meaningful; Mastech Digital, Inc trades at 43.2×. BGSF, Inc. grew revenue faster over the last twelve months: 69.6% against −11.8%. Mastech Digital, Inc has the higher net margin (1.18% vs −8.99%) and the higher return on invested capital (1.73% vs −13.3%). Across the 18 metrics below, Mastech Digital, Inc leads on 14 and BGSF, Inc. on 4.

Valuation

Metric BGSF MHH Staffing & Employment Services median
P/E n/m 43.24 24.32
P/S 0.57 0.50 0.41
P/B 1.15 0.96 1.28
Price to free cash flow n/m 9.30 18.57
EV/EBITDA n/m 10.55 10.55
EV/Sales 0.88 0.32 0.40
Earnings yield (14.80%) 2.31% 0.99%
Free cash flow yield (6.49%) 10.75% 2.79%

Profitability

Metric BGSF MHH Staffing & Employment Services median
Gross margin 35.49% 27.97% 23.11%
Operating margin (6.40%) 0.88% 0.08%
Net margin (8.99%) 1.18% 0.23%
Free cash flow margin (3.73%) 5.38% 1.23%
Return on equity (13.31%) 2.31% 2.31%
Return on assets (8.17%) 1.89% 0.00%
Return on invested capital (13.25%) 1.73% 0.00%

Growth

Metric BGSF MHH Staffing & Employment Services median
Revenue growth (TTM) 69.64% (11.76%) 0.69%
EPS growth (last fiscal year) (235.48%) (82.14%) —
Revenue growth, 5-year CAGR (14.74%) (0.28%) 1.23%
Net income growth, 5-year CAGR 0.00% (42.70%) 0.00%

Health

Metric BGSF MHH Staffing & Employment Services median
Debt to equity 0.00 0.00 0.08
Current ratio 5.11 4.10 1.50
Net debt to EBITDA 3.00 (9.32) (0.22)

Dividend

Metric BGSF MHH Staffing & Employment Services median
Dividend yield 5.87% — 2.16%
Payout ratio 0.43 0.00 0.30

Size

Metric BGSF MHH Staffing & Employment Services median
Market cap 53.40m 86.67m 590.17m

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