DLH (DLHC) versus Its Rivals Critical Analysis

DLH (NASDAQ: DLHC) is one of 23 publicly-traded companies in the “Help supply services” industry, but how does it contrast to its competitors? We will compare DLH to similar businesses based on the strength of its profitability, analyst recommendations, valuation, earnings, risk, institutional ownership and dividends.

Institutional and Insider Ownership

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55.5% of DLH shares are held by institutional investors. Comparatively, 62.1% of shares of all “Help supply services” companies are held by institutional investors. 25.9% of DLH shares are held by company insiders. Comparatively, 19.3% of shares of all “Help supply services” companies 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.

Profitability

This table compares DLH and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DLH 0.09% 10.06% 5.18%
DLH Competitors 1.78% -1.82% 5.49%

Analyst Recommendations

This is a summary of recent ratings and target prices for DLH and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DLH 0 0 2 0 3.00
DLH Competitors 74 335 555 11 2.52

DLH currently has a consensus price target of $7.00, indicating a potential upside of 17.06%. As a group, “Help supply services” companies have a potential upside of 8.21%. Given DLH’s stronger consensus rating and higher probable upside, research analysts clearly believe DLH is more favorable than its competitors.

Volatility and Risk

DLH has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, DLH’s competitors have a beta of 1.18, indicating that their average share price is 18% more volatile than the S&P 500.

Valuation and Earnings

This table compares DLH and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DLH $115.66 million $3.28 million 22.15
DLH Competitors $4.22 billion $125.65 million 11.26

DLH’s competitors have higher revenue and earnings than DLH. DLH is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

DLH competitors beat DLH on 7 of the 13 factors compared.

DLH Company Profile

DLH Holdings Corp. provides healthcare and social services in the United States. It offers defense and veterans’ health solutions, including case management, physical and behavioral health examinations, and medical administration and logistics services. The company also provides a range of human services and solutions, which consists of educational and environmental support services for the underserved children and youth comprising health, nutritional, parental, and behavioral services; and IT system architecture design, migration plan, and ongoing maintenance services. In addition, it offers public health and life sciences services, such as disease prevention; and health promotion to underserved and hard to reach at-risk communities through development of strategic communication campaigns, research on emerging trends, health informatics analyses, and application of best practices. The company offers its services to government agencies, including the Department of Veteran Affairs, the Department of Health and Human Services, the Department of Defense, and other government clients. The company was formerly known as TeamStaff, Inc. and changed its name to DLH Holdings Corp. in June 2012. DLH Holdings Corp. was founded in 1969 and is headquartered in Atlanta, Georgia.

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