Two small-cap business services companies, UMC, Inc. and Black Diamond Group Limited, are currently under scrutiny for their investment potential. A detailed comparison of their risk factors, dividends, institutional ownership, earnings, analyst recommendations, profitability, and valuation reveals significant differences between the two firms.
Volatility and Risk Factors
UMC has a notably high beta of 33.65, indicating that its share price is 3,265% more volatile than the S&P 500. In contrast, Black Diamond Group features a beta of 0.64, suggesting its share price is 36% less volatile than the benchmark index. This disparity in volatility may impact investor decisions, especially those with a low-risk tolerance.
Valuation and Earnings Comparison
In terms of financial performance, Black Diamond Group outperforms UMC. The company boasts higher revenue and earnings per share (EPS) than its counterpart, which contributes to its stronger market position. The contrasting financial health of these companies is further highlighted in their respective earnings reports and revenue streams.
Analysts have also weighed in on the two companies. According to recent data from MarketBeat, Black Diamond Group received favorable ratings compared to UMC. This endorsement from analysts adds another layer of credibility to Black Diamond’s investment appeal.
Profitability metrics further emphasize the differences between these two firms. Black Diamond Group excels in net margins, return on equity, and return on assets, surpassing UMC in seven out of eight key performance indicators evaluated. This trend indicates a more robust operational efficiency within Black Diamond Group.
Company Profiles
UMC, Inc., incorporated in 1989 and headquartered in Pampa, Texas, specializes in medical insurance claims coding and processing. It provides services such as electronic medical records storage and accounts receivable management primarily to healthcare providers across the United States. Originally known as United Medicorp, Inc., the company rebranded to UMC, Inc. in May 2007.
In contrast, Black Diamond Group Limited, founded in 2003 and based in Calgary, Canada, offers modular space and workforce accommodation solutions. Its operations are divided into two key segments: Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment serves various industries, including construction, healthcare, and education, providing products like office units and custom modular facilities. Meanwhile, the Workforce Solutions segment focuses on rental accommodations and logistical services, catering to sectors such as resource and infrastructure development.
The differing business models and market approaches of UMC and Black Diamond Group significantly influence their respective financial performances and investment potential.
In summary, the evaluation indicates that Black Diamond Group presents a more favorable option for investors when considering volatility, profitability, and overall financial health. As both companies operate in distinct sectors, potential investors should weigh these factors thoroughly before making any investment decisions.
