BrightView (NYSE:BV) & BGSF (NYSE:BGSF) Critical Review

BGSF (NYSE:BGSF) and BrightView (NYSE:BV) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for BGSF and BrightView, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BGSF	1	1	0	0	1.50
BrightView	3	2	3	1	2.22

BrightView has a consensus price target of $14.52, suggesting a potential upside of 3.58%. Given BrightView’s stronger consensus rating and higher probable upside, analysts plainly believe BrightView is more favorable than BGSF.

Risk and Volatility

BGSF has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, BrightView has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Profitability

This table compares BGSF and BrightView’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BGSF	-11.98%	-18.91%	-12.30%
BrightView	1.70%	7.25%	2.73%

Valuation and Earnings

This table compares BGSF and BrightView”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BGSF	$93.31 million	0.62	-$11.43 million	($1.00)	-5.37
BrightView	$2.67 billion	0.49	$56.00 million	($0.07)	-200.21

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

Insider & Institutional Ownership

37.2% of BGSF shares are held by institutional investors. Comparatively, 92.4% of BrightView shares are held by institutional investors. 8.0% of BGSF shares are held by company insiders. Comparatively, 2.8% of BrightView shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

BrightView beats BGSF on 12 of the 15 factors compared between the two stocks.

About BGSF

BGSF, Inc., together with its subsidiaries, provides consulting, managed services, and professional workforce solutions in the United States. It operates in two segments, Property Management and Professional. The Property Management segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, management services, and other IT workforce solutions. This segment also offers finance, accounting, legal, human resource, and related support personnel. It serves its products to fortune 500 companies, and medium and small companies, as well as consulting companies. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.

About BrightView

BrightView Holdings, Inc., through its subsidiaries, provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance. Its customers' properties include corporate and commercial properties, homeowners associations, public parks, hotels and resorts, airport authorities, municipalities, hospitals and other healthcare facilities, educational institutions, restaurants and retail, and golf courses. This segment's customer base includes approximately 8,800 office parks and corporate campuses 7,100 residential communities, and 550 educational institutions. The Development Services segment offers landscape architecture and development services for new facilities and redesign projects. Its services include project design and management services, landscape architecture and installation, irrigation installation, tree moving and installation, pool and water features, sports field, and other services. BrightView Holdings, Inc. also operates as official field consultant to various league baseball. The company was founded in 1939 and is headquartered in Blue Bell, Pennsylvania.