Comparing DHI Group (NYSE:DHX) & Willdan Group (NASDAQ:WLDN)

DHI Group (NYSE:DHX) and Willdan Group (NASDAQ:WLDN) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

69.3% of DHI Group shares are held by institutional investors. Comparatively, 72.3% of Willdan Group shares are held by institutional investors. 16.2% of DHI Group shares are held by company insiders. Comparatively, 5.6% of Willdan Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

DHI Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Willdan Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Profitability

This table compares DHI Group and Willdan Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DHI Group	0.97%	13.01%	6.46%
Willdan Group	8.80%	24.51%	13.92%

Valuation and Earnings

This table compares DHI Group and Willdan Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHI Group	$127.83 million	1.59	-$13.51 million	$0.03	155.83
Willdan Group	$681.55 million	1.65	$52.56 million	$4.26	17.34

Willdan Group has higher revenue and earnings than DHI Group. Willdan Group is trading at a lower price-to-earnings ratio than DHI Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for DHI Group and Willdan Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHI Group	0	2	3	0	2.60
Willdan Group	0	2	1	0	2.33

DHI Group currently has a consensus price target of $6.75, indicating a potential upside of 44.39%. Willdan Group has a consensus price target of $127.50, indicating a potential upside of 72.58%. Given Willdan Group’s higher possible upside, analysts plainly believe Willdan Group is more favorable than DHI Group.

Summary

Willdan Group beats DHI Group on 9 of the 13 factors compared between the two stocks.

About DHI Group

DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals and other select online communities in the United States. Its solutions include talent profiles; job postings; employer branding; and other services comprising virtual and live career events, sourcing services, and content and data services that provides tailored content to help professionals manage their careers and provide employers insight into recruiting strategies and trends. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and various other technology and engineering professionals; and ClearanceJobs, an online career community, which matches security-cleared professionals with employers in a secure and private environment to fill the jobs that safeguard its nation. It serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; staffing and consulting firms; and marketing departments of companies, as well as direct hiring companies. The company offers its products and services primarily through its direct sales force and agency partner channel. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1990 and is headquartered in Centennial, Colorado.

About Willdan Group

Willdan Group, Inc., together with its subsidiaries, provides professional, technical, and consulting services primarily in the United States. It operates in two segments, Energy, and Engineering and Consulting. The Energy segment offers comprehensive audit and surveys, program design and implementation, master planning, demand reduction, grid optimization, benchmarking analyses, design engineering, construction management, performance contracting, installation, alternative financing, measurement and verification services, and software and data analytics, as well as energy consulting and engineering, turnkey facility and infrastructure projects, and customer support services. The Engineering and Consulting segment provides building and safety, city engineering and code enforcement, development plan review and inspection, disaster recovery, geotechnical and earthquake engineering, planning and surveying, contract staff support, program and construction management, structural engineering, transportation and traffic engineering, and water resources services. This segment also offers district administration, financial consulting, and federal compliance services. It serves public and governmental agencies, including cities, counties, redevelopment agencies, water districts, school districts, and universities; investor and municipal owned energy utilities; state and federal agencies; and commercial and industrial firms, as well as various other special districts and agencies. The company was founded in 1964 and is headquartered in Anaheim, California.