Head-To-Head Survey: DHI Group (NYSE:DHX) vs. Accolade (NASDAQ:ACCD)

Accolade (NASDAQ:ACCD) and DHI Group (NYSE:DHX) 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 institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Profitability

This table compares Accolade and DHI Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Accolade	-18.16%	-18.43%	-10.35%
DHI Group	0.95%	7.87%	3.80%

Insider & Institutional Ownership

85.0% of Accolade shares are held by institutional investors. Comparatively, 69.3% of DHI Group shares are held by institutional investors. 8.2% of Accolade shares are held by company insiders. Comparatively, 15.8% of DHI Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Accolade has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500. Comparatively, DHI Group has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Accolade and DHI Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accolade	0	3	12	0	2.80
DHI Group	0	0	2	0	3.00

Accolade presently has a consensus price target of $9.04, indicating a potential upside of 153.27%. DHI Group has a consensus price target of $5.25, indicating a potential upside of 201.72%. Given DHI Group’s stronger consensus rating and higher probable upside, analysts clearly believe DHI Group is more favorable than Accolade.

Earnings and Valuation

This table compares Accolade and DHI Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accolade	$414.29 million	0.69	-$99.81 million	($1.03)	-3.47
DHI Group	$144.43 million	0.58	$3.49 million	$0.04	43.50

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

Summary

DHI Group beats Accolade on 9 of the 14 factors compared between the two stocks.

About Accolade

Accolade, Inc., together with its subsidiaries, engages in the development and provision of personalized and technology-enabled solutions that help people to understand, navigate, and utilize the healthcare system and their workplace benefits in the United States. The company offers a platform with cloud-based intelligent technology and multimodal support from a team of advocates and clinicians, including registered nurses, physician medical directors, pharmacists, behavioral health specialists, women’s health specialists, case management specialists, expert medical opinion providers, and primary care physicians. It also provides medical opinion services to commercial customers; and navigation, care, and advocacy solutions. In addition, the company offers medical consultations that connect patients to qualified condition-specific specialists for adult and pediatric care; and primary care and mental health support solutions. It serves employers who provide employees and their families a single place to turn for their health, healthcare, and benefits needs. The company was incorporated in 2007 and is headquartered in Seattle, Washington.

About DHI Group

DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals and other select online communities in the United States. Its solutions include talent profiles; job postings; employer branding; and other services comprising virtual and live career events, sourcing services, and content and data services that provides tailored content to help professionals manage their careers and provide employers insight into recruiting strategies and trends. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and various other technology and engineering professionals; and ClearanceJobs, an online career community, which matches security-cleared professionals with employers in a secure and private environment to fill the jobs that safeguard its nation. It serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; staffing and consulting firms; and marketing departments of companies, as well as direct hiring companies. The company offers its products and services primarily through its direct sales force and agency partner channel. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1990 and is headquartered in Centennial, Colorado.