DLH Holdings Corp. (DLHC) vs Where Food Comes From Inc. (WFCF)

DLH Holdings Corp. and Where Food Comes From Inc. are both Specialty Business Services companies. Where Food Comes From Inc. is the larger, with a market value of $60.5M against $54.6M — 1.1× the size. DLH Holdings Corp. has negative trailing earnings, so its P/E is not meaningful; Where Food Comes From Inc. trades at 38.5×. Where Food Comes From Inc. grew revenue faster over the last twelve months: −2.23% against −29.5%. Where Food Comes From Inc. has the higher net margin (5.78% vs −8.51%) and the higher return on invested capital (17.1% vs −0.08%). Across the 21 metrics below, Where Food Comes From Inc. leads on 13 and DLH Holdings Corp. on 8.

Valuation

Metric DLHC WFCF Specialty Business Services median
P/E n/m 38.54 23.86
P/S 0.20 2.16 1.06
P/B 0.55 6.14 2.37
Price to free cash flow 3.72 64.46 16.54
EV/EBITDA 9.67 23.98 11.51
EV/Sales 0.70 2.04 1.51
Earnings yield (41.69%) 2.59% 2.14%
Free cash flow yield 26.88% 1.55% 1.55%

Profitability

Metric DLHC WFCF Specialty Business Services median
Gross margin 18.35% 38.27% 35.31%
Operating margin (0.11%) 5.90% 3.43%
Net margin (8.51%) 5.78% 1.67%
Free cash flow margin 5.46% 4.02% 3.28%
Return on equity (20.84%) 15.41% 0.58%
Return on assets (7.78%) 9.59% 0.33%
Return on invested capital (0.08%) 17.07% 0.65%

Growth

Metric DLHC WFCF Specialty Business Services median
Revenue growth (TTM) (29.52%) (2.23%) 6.04%
EPS growth (last fiscal year) (82.35%) (25.00%) —
Revenue growth, 5-year CAGR 10.49% 4.39% 7.66%
Net income growth, 5-year CAGR (28.15%) 2.09% 0.00%

Health

Metric DLHC WFCF Specialty Business Services median
Debt to equity 1.35 0.00 0.21
Current ratio 0.67 1.67 1.62
Net debt to EBITDA 3.58 (1.72) 1.16

Dividend

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

Size

Metric DLHC WFCF Specialty Business Services median
Market cap 54.64m 60.50m 879.14m

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