The Providence Service (PRSC) and Despegar.com (DESP) Financial Review

The Providence Service (NASDAQ: PRSC) and Despegar.com (NYSE:DESP) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for The Providence Service and Despegar.com, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Providence Service 0 0 1 0 3.00
Despegar.com 0 2 5 0 2.71

The Providence Service currently has a consensus price target of $67.00, suggesting a potential downside of 13.69%. Despegar.com has a consensus price target of $36.71, suggesting a potential upside of 61.45%. Given Despegar.com’s higher probable upside, analysts clearly believe Despegar.com is more favorable than The Providence Service.

Valuation & Earnings

This table compares The Providence Service and Despegar.com’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Providence Service $1.62 billion 0.62 $53.36 million N/A N/A
Despegar.com $523.94 million 2.92 $42.36 million $0.69 32.96

The Providence Service has higher revenue and earnings than Despegar.com.

Institutional & Insider Ownership

92.1% of The Providence Service shares are held by institutional investors. Comparatively, 73.1% of Despegar.com shares are held by institutional investors. 13.8% of The Providence Service shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares The Providence Service and Despegar.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Providence Service 3.13% 8.39% 3.71%
Despegar.com N/A N/A N/A

Summary

The Providence Service beats Despegar.com on 8 of the 11 factors compared between the two stocks.

The Providence Service Company Profile

The Providence Service Corporation, through its subsidiaries, provides healthcare and workforce development services in the United States and internationally. It operates in two segments, Non-Emergency Transportation Services (NET Services) and Workforce Development Services (WD Services). The NET Services segment offers non-emergency medical transportation services for Medicaid or Medicare eligible members, whose limited mobility or financial resources hinder their ability to access necessary healthcare and social services. The WD Services segment offers workforce development and offender rehabilitation services, including employment preparation and placement, apprenticeship and training, youth community service programs, and other health related services to clients on behalf of governmental and private entities. This segment serves disabled, unemployed, and individuals seeking new skills, as well as individuals that are coping with medical illnesses, newly graduated from educational institutions, and being released from incarceration. The company was founded in 1996 and is headquartered in Stamford, Connecticut.

Despegar.com Company Profile

Despegar.com, Corp., an online travel company, provides a range of travel and travel-related products through its Websites and mobile applications in Latin America. It operates through two segments, Air; and Packages, Hotels and Other Travel Products. The company offers airline tickets, packages, hotels, and other travel-related products under the Despegar and Decolar brands, which enable consumers to find, compare, plan, and purchase travel products through its marketplace. It provides a technology platform for its travel suppliers to manage and distribute their products. The company was founded in 1999 and is based in Buenos Aires, Argentina.

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