ICF International (NASDAQ: ICFI) and Performant Financial Corp (NASDAQ:PFMT) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitabiliy, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Volatility & Risk
ICF International has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Performant Financial Corp has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.
Institutional & Insider Ownership
90.2% of ICF International shares are held by institutional investors. Comparatively, 54.8% of Performant Financial Corp shares are held by institutional investors. 5.5% of ICF International shares are held by insiders. Comparatively, 33.6% of Performant Financial Corp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares ICF International and Performant Financial Corp’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| ICF International | $1.20 billion | 0.70 | $113.62 million | $2.50 | 17.98 |
| Performant Financial Corp | $136.19 million | 0.74 | $10.86 million | ($0.28) | -7.14 |
ICF International has higher revenue and earnings than Performant Financial Corp. Performant Financial Corp is trading at a lower price-to-earnings ratio than ICF International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ICF International and Performant Financial Corp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ICF International | 4.02% | 10.25% | 5.29% |
| Performant Financial Corp | -8.94% | -13.93% | -6.48% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for ICF International and Performant Financial Corp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ICF International | 0 | 2 | 2 | 0 | 2.50 |
| Performant Financial Corp | 0 | 1 | 0 | 0 | 2.00 |
ICF International currently has a consensus price target of $60.00, suggesting a potential upside of 33.48%. Given ICF International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe ICF International is more favorable than Performant Financial Corp.
Summary
ICF International beats Performant Financial Corp on 10 of the 13 factors compared between the two stocks.
About ICF International
ICF International, Inc. provides professional services and technology-based solutions to government and commercial clients, including management, technology, and policy consulting and implementation services. The Company’s services address four markets: energy, environment and infrastructure; health, education and social programs; safety and security, and consumer and financial. Its services include research and analytic services, assessment and advisory services, design and management services, solution identification and implementation services, and engagement services. The Company researches policy, industry and stakeholder issues, trends and behavior. The Company collects and analyzes various data to understand issues and options for its clients. The Company measures and evaluates results and their impact and, based on those assessments, the Company provides advice to its clients on how to navigate societal, market, business, communication and technology challenges.
About Performant Financial Corp
Performant Financial Corporation (Performant) provides technology-enabled recovery and related analytics services in the United States. The Company’s services identify and recover delinquent or defaulted assets and improper payments for both government and private clients in a range of markets. The Company provides its services on an outsourced basis where the Company handles many or all aspects of its clients’ recovery processes. The Company uses its technology-enabled services platform to provide recovery and analytics services in a range of markets for the identification and recovery of student loans, improper healthcare payments and delinquent state tax and federal treasury receivables. It provides recovery services to the government-supported student loan industry and its clients include the Department of Education and Guaranty Agencies, as well as private financial institutions. The Company provides recovery services related to improper payments in the healthcare market.
Receive News & Ratings for ICF International Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ICF International Inc. and related companies with MarketBeat.com's FREE daily email newsletter.
