Financial Contrast: Exponent (NASDAQ:EXPO) vs. 1847 (OTCMKTS:EFSH)

Exponent (NASDAQ:EXPO) and 1847 (OTCMKTS:EFSH) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Exponent and 1847, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exponent	0	1	1	0	2.50
1847	0	0	0	0	N/A

Exponent currently has a consensus target price of $97.00, indicating a potential upside of 17.31%. Given Exponent’s higher probable upside, equities research analysts clearly believe Exponent is more favorable than 1847.

Earnings and Valuation

This table compares Exponent and 1847’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exponent	$536.77 million	7.79	$100.34 million	$1.95	42.41
1847	$48.93 million	0.04	-$10.16 million	N/A	N/A

Exponent has higher revenue and earnings than 1847.

Risk & Volatility

Exponent has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, 1847 has a beta of 4.33, meaning that its stock price is 333% more volatile than the S&P 500.

Insider and Institutional Ownership

92.4% of Exponent shares are held by institutional investors. Comparatively, 6.3% of 1847 shares are held by institutional investors. 2.2% of Exponent shares are held by insiders. Comparatively, 9.0% of 1847 shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Exponent and 1847’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exponent	18.69%	28.49%	16.58%
1847	-21.49%	-1,352.73%	-24.59%

Summary

Exponent beats 1847 on 9 of the 11 factors compared between the two stocks.

About Exponent

Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company in the United States and internationally. The company operates in two segments, Engineering and Other Scientific, and Environmental and Health. The Engineering and Other Scientific segment provides services in the areas of biomechanics, biomedical engineering and sciences, buildings and structures, civil engineering, construction consulting, data sciences, electrical engineering and computer science, human factors, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, thermal sciences, and vehicle engineering. The Environmental and Health segment offers services in the areas of chemical regulation and food safety, ecological and biological sciences, environmental and earth sciences, and health sciences. The company offers approximately 90 technical disciplines to solve pressing and complicated challenges facing stakeholders. It serves clients in chemical, construction, consumer products, energy, food, beverage and nutrition, government, life sciences, insurance, manufacturing, technology, industrial equipment, transportation, and other sectors of the economy. The company was formerly known as The Failure Group, Inc. and changed its name to Exponent, Inc. in 1998. The company was founded in 1967 and is headquartered in Menlo Park, California.

About 1847

1847 Holdings LLC engages in the acquisition and management of small businesses in different industries. It operates through the following segments: Retail and Appliances, Construction, and Automotive Supplies. The Retail and Appliances segment provides a wide variety of appliance services including sales, delivery, installation, service and repair, extended warranties, and financing. The Construction segment offers doors, door frames, base boards, crown molding, cabinetry, bathroom sinks and cabinets, bookcases, built-in closets, and fireplace mantles. The Automotive Supplies segment designs and sells horn and safety products and provides vehicle emergency and safety warning lights for cars, trucks, industrial equipment, and emergency vehicles. The company was founded by Ellery W. Roberts on January 22, 2013 and is headquartered in New York, NY.