Contrasting DLH (DLHC) & Its Rivals

DLH (NASDAQ:DLHC) is one of 203 public companies in the “Professional Services” industry, but how does it weigh in compared to its peers? We will compare DLH to related companies based on the strength of its institutional ownership, analyst recommendations, valuation, risk, earnings, profitability and dividends.

Volatility and Risk

DLH has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, DLH’s peers have a beta of 0.97, meaning that their average stock price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for DLH and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DLH	1	1	1	0	2.00
DLH Competitors	1584	6447	9167	430	2.48

As a group, “Professional Services” companies have a potential upside of 26.24%. Given DLH’s peers stronger consensus rating and higher probable upside, analysts plainly believe DLH has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares DLH and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DLH	$344.50 million	$1.36 million	-2.37
DLH Competitors	$3.29 billion	$228.38 million	35.43

DLH’s peers have higher revenue and earnings than DLH. DLH is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares DLH and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DLH	-8.51%	-10.42%	-4.04%
DLH Competitors	-0.59%	20.60%	4.33%

Insider and Institutional Ownership

67.2% of DLH shares are held by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are held by institutional investors. 12.8% of DLH shares are held by insiders. Comparatively, 17.2% of shares of all “Professional Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

DLH peers beat DLH on 11 of the 13 factors compared.

About DLH

DLH Holdings Corp. provides technology-enabled business process outsourcing, program management solutions, and public health research and analytics services in the United States. It offers digital transformation and cyber security solutions, including artificial intelligence and machine learning, cloud enablement, cybersecurity ecosystem, big data analytics, and modeling and simulation to the National Institutes of Health (NIH), the Defense Health Agency, Tele-medicine and Advanced Technology Research Center, and US Navy Naval Information Warfare Center (NIWC). The company also provides science research and development services and solutions, such as data analytics, testing and evaluation, clinical trials research services, and epidemiology studies to support multiple operating divisions, including NIH and the Center for Disease Control and Prevention, as well as the Military Health System. In addition, it offers system engineering and integration solutions in the areas of pharmaceutical delivery logistics, fire protection engineering, biomedical equipment, and technology engineering on behalf of the Department of Veterans Affairs, NIWC, Health and Human Services, and other federal customers. The company also provides business process management services under the trademarks, e-PRAT and SPOT-m, as well as the registered trademark, Infinibyte for cloud-based solutions. The company was formerly known as TeamStaff, Inc. and changed its name to DLH Holdings Corp. in June 2012. DLH Holdings Corp. was incorporated in 1969 and is headquartered in Atlanta, Georgia.