Financial Analysis: Sparta Commercial Services (OTCMKTS:SRCO) vs. SPAR Group (NASDAQ:SGRP)

Earnings & Valuation

This table compares Sparta Commercial Services and SPAR Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sparta Commercial Services	$190,000.00	49.99	-$640,000.00	($0.04)	-6.49
SPAR Group	$262.75 million	0.20	$3.90 million	$0.51	4.37

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

Risk & Volatility

Sparta Commercial Services has a beta of -0.69, meaning that its share price is 169% less volatile than the S&P 500. Comparatively, SPAR Group has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Institutional and Insider Ownership

9.6% of SPAR Group shares are held by institutional investors. 0.5% of Sparta Commercial Services shares are held by insiders. Comparatively, 59.7% of SPAR Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Sparta Commercial Services and SPAR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sparta Commercial Services	-811.63%	N/A	-1,061.05%
SPAR Group	5.35%	13.20%	5.58%

Summary

SPAR Group beats Sparta Commercial Services on 10 of the 11 factors compared between the two stocks.

About Sparta Commercial Services

Sparta Commercial Services, Inc. develops, markets, and manages business websites and mobile applications for smartphones and tablets under the iMobileApp name. It offers mobile applications for vehicle dealerships, racetracks, private clubs, country clubs, schools and entertainment venues, restaurants, grocery stores, and various other merchant types. The company also owns and manages websites, which sell motorcycle, recreational vehicle, and truck title history reports for consumers, retailers, municipals, nonprofits, auction houses, banks, and insurance companies; and designs, launches, maintains, and hosts websites for businesses, as well as provides text messaging services. In addition, it offers eCommerce, customer relationship management development and integration, search engine optimization, social media marketing, and online reviews website services to its clients. Further, the company provides an equipment-leasing product for local and state agencies that helps to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment; and a range of hemp-derived cannabinol products through newworldhealthcbd.com. The company was incorporated in 1980 and is headquartered in New York, New York.

About SPAR Group

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.