Critical Contrast: SPAR Group (NASDAQ:SGRP) and Xometry (NASDAQ:XMTR)

SPAR Group (NASDAQ:SGRP) and Xometry (NASDAQ:XMTR) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.

Earnings and Valuation

This table compares SPAR Group and Xometry”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPAR Group	$258.42 million	0.22	$3.90 million	$0.53	4.57
Xometry	$463.41 million	2.75	-$67.47 million	($1.09)	-23.71

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SPAR Group and Xometry, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPAR Group	0	0	0	0	N/A
Xometry	1	2	4	0	2.43

Xometry has a consensus price target of $22.86, suggesting a potential downside of 11.54%. Given Xometry’s higher possible upside, analysts plainly believe Xometry is more favorable than SPAR Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SPAR Group	4.90%	12.27%	5.15%
Xometry	-10.53%	-10.75%	-5.05%

Risk & Volatility

SPAR Group has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Xometry has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Insider & Institutional Ownership

9.6% of SPAR Group shares are held by institutional investors. Comparatively, 97.3% of Xometry shares are held by institutional investors. 59.7% of SPAR Group shares are held by company insiders. Comparatively, 16.8% of Xometry shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

SPAR Group beats Xometry on 8 of the 13 factors compared between the two stocks.

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.

About Xometry

Xometry, Inc. operates an online marketplace that enables buyers to source custom-manufactured parts and assemblies in the United States and internationally. It provides computer numerical control manufacturing, sheet metal forming, and sheet cutting; 3D printing, including fused deposition modeling, direct metal laser sintering, PolyJet, stereolithography, selective laser sintering, binder jetting, carbon digital light synthesis, multi jet fusion, and lubricant sublayer photo-curing; and die casting, stamping, injection molding, urethane casting, tube cutting, and tube bending, as well as finishing services, rapid prototyping, and high-volume production services. It serves aerospace, healthcare, robotics, industrial, defense, energy, automotive, government, education, and consumer goods industries. The company was formerly known as NextLine Manufacturing Corp. and changed its name to Xometry, Inc. in June 2015. Xometry, Inc. was incorporated in 2013 and is headquartered in North Bethesda, Maryland.