DLH Holdings Corp. (NASDAQ: DLHC) and Engility Holdings (NYSE:EGL) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitabiliy, valuation, institutional ownership, earnings and dividends.
Volatility & Risk
DLH Holdings Corp. has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Engility Holdings has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500.
Profitability
This table compares DLH Holdings Corp. and Engility Holdings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DLH Holdings Corp. | 4.13% | 14.32% | 6.82% |
| Engility Holdings | -0.03% | 10.19% | 3.27% |
Valuation and Earnings
This table compares DLH Holdings Corp. and Engility Holdings’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| DLH Holdings Corp. | $108.13 million | 0.60 | $7.68 million | $0.38 | 15.29 |
| Engility Holdings | $2.04 billion | 0.53 | $192.00 million | ($0.03) | -978.33 |
Engility Holdings has higher revenue and earnings than DLH Holdings Corp.. Engility Holdings is trading at a lower price-to-earnings ratio than DLH Holdings Corp., indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
51.0% of DLH Holdings Corp. shares are held by institutional investors. Comparatively, 91.2% of Engility Holdings shares are held by institutional investors. 21.6% of DLH Holdings Corp. shares are held by insiders. Comparatively, 0.4% of Engility Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for DLH Holdings Corp. and Engility Holdings, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DLH Holdings Corp. | 0 | 0 | 2 | 0 | 3.00 |
| Engility Holdings | 0 | 2 | 4 | 0 | 2.67 |
DLH Holdings Corp. presently has a consensus price target of $6.75, indicating a potential upside of 16.18%. Engility Holdings has a consensus price target of $35.83, indicating a potential upside of 22.09%. Given Engility Holdings’ higher probable upside, analysts clearly believe Engility Holdings is more favorable than DLH Holdings Corp..
Summary
DLH Holdings Corp. beats Engility Holdings on 8 of the 14 factors compared between the two stocks.
Engility Holdings Company Profile
Engility Holdings, Inc. (Engility) is a provider of systems engineering services, training, program management, and operational support for the United States Government worldwide. The Company’s business is focused on providing a range of engineering, technical, analytical, advisory, training, logistics and support services. The Company operates in two segments: Professional Support Services and Mission Support Services. The Professional Support Services segment provides Systems Engineering and Technical Assistance (SETA) services, program management support and software engineering lifecycle sustainment and support services. Through its Mission Support Services segment, it provides capabilities, such as defense related training, education and support services, law enforcement training, national security infrastructure and institutional development. In January 2014, Engility Holdings Inc completed the acquisition of Dynamics Research Corp.
Receive News & Ratings for DLH Holdings Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DLH Holdings Corp. and related companies with MarketBeat.com's FREE daily email newsletter.
