Wageworks ( NYSE:WAGE ) and BSQUARE ( NASDAQ:BSQR ) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Valuation and Earnings
Get Wageworks alerts: This table compares Wageworks and BSQUARE’s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Wageworks $364.71 million 3.03 $20.20 million N/A N/A BSQUARE $80.81 million 0.30 -$9.05 million N/A N/A Wageworks has higher revenue and earnings than BSQUARE.
This table compares Wageworks and BSQUARE’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Wageworks N/A N/A N/A BSQUARE -16.35% -45.12% -28.72% Volatility and Risk
Wageworks has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, BSQUARE has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Wageworks and BSQUARE, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Wageworks 0 2 4 0 2.67 BSQUARE 0 0 0 0 N/A Wageworks currently has a consensus target price of $48.62, indicating a potential upside of 74.45%. Given Wageworks’ higher possible upside, equities analysts clearly believe Wageworks is more favorable than BSQUARE.
Institutional and Insider Ownership
24.5% of BSQUARE shares are held by institutional investors. 3.5% of Wageworks shares are held by insiders. Comparatively, 11.0% of BSQUARE shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Wageworks beats BSQUARE on 8 of the 11 factors compared between the two stocks.
Wageworks Company Profile
WageWorks, Inc. is a leader in administering Consumer-Directed Benefits (CDBs). WageWorks is solely dedicated to administering CDBs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, COBRA, and other employee benefits. WageWorks is headquartered in San Mateo, California, with offices in major locations throughout the United States.
BSQUARE Company Profile
BSQUARE Corporation provides software solutions and related engineering services to businesses that develop, market, and sell standalone intelligent systems in North America, Europe, and Asia. Its software products include HTML5 rendering engine that is based on the open-source WebKit platform and facilitates device makers to create applications and user interfaces for their devices; and TestQuest 10, a software testing automation tool. The company also offers DataV software services, such as integration with enterprise databases; integration with internal enterprise systems; integration with external public or third-party data sources; custom application development; software integration on remote devices; training; and management of customer cloud deployments hosting DataV software. In addition, it provides engineering services, such as architectural and system design; software design and development; platform development systems integration; application, middleware, and multimedia software development; quality assurance and testing; device solution strategy consulting; technical support; implementation; and test automation engineering and consulting services. The company markets and sells its products to original equipment manufacturers, original design manufacturers, and corporate enterprises, as well as silicon and peripheral vendors. BSQUARE Corporation was founded in 1994 and is headquartered in Bellevue, Washington.