Contrasting BlackSky Technology (NYSE:BKSY) and Barrett Business Services (NASDAQ:BBSI)

Barrett Business Services (NASDAQ:BBSI) and BlackSky Technology (NYSE:BKSY) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

86.8% of Barrett Business Services shares are owned by institutional investors. Comparatively, 27.1% of BlackSky Technology shares are owned by institutional investors. 4.8% of Barrett Business Services shares are owned by company insiders. Comparatively, 5.2% of BlackSky Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barrett Business Services	$1.28 billion	0.57	$54.45 million	$1.26	23.87
BlackSky Technology	$132.15 million	6.92	-$70.26 million	($1.28)	-17.45

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

Risk & Volatility

Barrett Business Services has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, BlackSky Technology has a beta of 2.84, suggesting that its stock price is 184% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Barrett Business Services and BlackSky Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barrett Business Services	0	3	2	1	2.67
BlackSky Technology	1	1	2	1	2.60

Barrett Business Services presently has a consensus price target of $41.00, suggesting a potential upside of 36.34%. BlackSky Technology has a consensus price target of $39.33, suggesting a potential upside of 76.05%. Given BlackSky Technology’s higher probable upside, analysts clearly believe BlackSky Technology is more favorable than Barrett Business Services.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Barrett Business Services	2.44%	19.94%	5.67%
BlackSky Technology	-24.86%	-35.72%	-10.85%

Summary

Barrett Business Services beats BlackSky Technology on 9 of the 13 factors compared between the two stocks.

About Barrett Business Services

Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. The company develops a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. It offers professional employer services under which it enters into a client services agreement to establish a co-employment relationship with each client company, assuming responsibility for payroll, payroll taxes, workers compensation coverage, and other administration functions for the client’s existing workforce. The company provides staffing and recruiting services, such as on-demand or short-term staffing assignment, contract staffing, direct placement, and long-term or indefinite-term on-site management services. It serves electronics manufacturers, light-manufacturing industries, agriculture-based companies, transportation and shipping enterprises, food processors, telecommunications companies, public utilities, general contractors in various construction-related fields, restaurant franchises, and professional services firms. Barrett Business Services, Inc. was incorporated in 1965 and is headquartered in Vancouver, Washington.

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.