Analyzing HireQuest (NASDAQ:HQI) & BlackSky Technology (NYSE:BKSY)

BlackSky Technology (NYSE:BKSY) and HireQuest (NASDAQ:HQI) are both small-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Institutional & Insider Ownership

27.1% of BlackSky Technology shares are owned by institutional investors. Comparatively, 12.0% of HireQuest shares are owned by institutional investors. 5.2% of BlackSky Technology shares are owned by insiders. Comparatively, 42.9% of HireQuest shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

BlackSky Technology has a beta of 2.61, indicating that its share price is 161% more volatile than the S&P 500. Comparatively, HireQuest has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Profitability

This table compares BlackSky Technology and HireQuest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlackSky Technology	-61.24%	-68.90%	-16.14%
HireQuest	21.98%	14.90%	10.90%

Earnings and Valuation

This table compares BlackSky Technology and HireQuest”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackSky Technology	$106.57 million	11.16	-$70.26 million	($1.82)	-15.97
HireQuest	$30.64 million	7.53	$6.33 million	$0.46	36.08

HireQuest has lower revenue, but higher earnings than BlackSky Technology. BlackSky Technology is trading at a lower price-to-earnings ratio than HireQuest, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for BlackSky Technology and HireQuest, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackSky Technology	1	1	2	1	2.60
HireQuest	0	1	2	0	2.67

BlackSky Technology currently has a consensus price target of $39.33, suggesting a potential upside of 35.32%. HireQuest has a consensus price target of $15.00, suggesting a potential downside of 9.61%. Given BlackSky Technology’s higher probable upside, analysts plainly believe BlackSky Technology is more favorable than HireQuest.

Summary

HireQuest beats BlackSky Technology on 8 of the 14 factors compared between the two stocks.

About BlackSky Technology

BlackSky Technology Inc. provides geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operation of satellite and ground systems for government and commercial customers in North America, the Middle East, the Asia Pacific, and internationally. The company's Spectra software platform processes a range of observations from its satellite constellation and various external data sources, including imaging, radar and radio frequency satellites, environmental sensors, asset tracking sensors, Internet-of-Things (IoT) connected devices, internet-enabled narrative sources, and a variety of geotemporal data feeds. It offers a range of services related to object, change and anomaly detection, site monitoring, and enhanced analytics, which helps to detect key pattern of life changes in critical locations, including strategic locations and infrastructure comprising ports, airports, and construction sites; retail activity; commodities stockpiles; and other sites that contain critical commodities and supply chain inventory. In addition, the company develops and delivers satellites and payload systems; and provides professional and engineering services. Its products and services are used in national security, supply chain intelligence, crisis management, critical infrastructure monitoring, economic intelligence, and other applications. BlackSky Technology Inc. was incorporated in 2018 and is headquartered in Herndon, Virginia.

About HireQuest

HireQuest, Inc. provides temporary staffing services in the United States. It offers staffing services, including direct-dispatch, executive search, consultant, unskilled and semi-skilled industrial and construction personnel, clerical and administrative personnel, and permanent placement services, as well as commercial and non-CDL drivers, and skilled personnel in the medical and dental industries. The company provides its services under the HireQuest Direct, HireQuest, SNelling, DriverQuest, HireQuest Health, Northbound Executive Search, and MRI trade names. It serves construction, recycling, warehousing, logistics, auctioneering, manufacturing, hospitality, landscaping, and retail industries, as well as dental practices. HireQuest, Inc. was founded in 2002 and is headquartered in Goose Creek, South Carolina.