DLH Holdings Corp. (DLHC) vs System1, Inc. (SST)

DLH Holdings Corp. and System1, Inc. are both Specialty Business Services companies. DLH Holdings Corp. is the larger, with a market value of $54.6M against $32.3M — 1.7× the size. DLH Holdings Corp. grew revenue faster over the last twelve months: −29.5% against −42.9%. DLH Holdings Corp. has the higher net margin (−8.51% vs −50.7%) and the higher return on invested capital (−0.08% vs −29.2%). Across the 17 metrics below, DLH Holdings Corp. leads on 11 and System1, Inc. on 6.

Valuation

Metric DLHC SST Specialty Business Services median
P/E n/m n/m 23.86
P/S 0.20 0.13 1.06
P/B 0.55 n/m 2.37
Price to free cash flow 3.72 n/m 16.54
EV/EBITDA 9.67 n/m 11.51
EV/Sales 0.70 1.51 1.51
Earnings yield (41.69%) (401.06%) 2.14%
Free cash flow yield 26.88% (238.07%) 1.55%

Profitability

Metric DLHC SST Specialty Business Services median
Gross margin 18.35% 50.68% 35.31%
Operating margin (0.11%) (51.03%) 3.43%
Net margin (8.51%) (50.66%) 1.67%
Free cash flow margin 5.46% (24.54%) 3.28%
Return on equity (20.84%) (41,665.91%) 0.58%
Return on assets (7.78%) (25.44%) 0.33%
Return on invested capital (0.08%) (29.18%) 0.65%

Growth

Metric DLHC SST Specialty Business Services median
Revenue growth (TTM) (29.52%) (42.93%) 6.04%
EPS growth (last fiscal year) (82.35%) 22.24% —
Revenue growth, 5-year CAGR 10.49% — 7.66%
Net income growth, 5-year CAGR (28.15%) 0.00% 0.00%

Health

Metric DLHC SST Specialty Business Services median
Debt to equity 1.35 (5.51) 0.21
Current ratio 0.67 0.77 1.62
Net debt to EBITDA 3.58 8.89 1.16

Dividend

Metric DLHC SST Specialty Business Services median
Dividend yield — — 1.61%
Payout ratio 0.00 0.00 0.00

Size

Metric DLHC SST Specialty Business Services median
Market cap 54.64m 32.31m 879.14m

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