Analyzing DynTek (OTCMKTS:DYNE) & First Advantage (NYSE:FA)

First Advantage (NYSE:FA) and DynTek (OTCMKTS:DYNE) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares First Advantage and DynTek’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Advantage	3.24%	13.94%	7.72%
DynTek	N/A	N/A	N/A

Earnings & Valuation

This table compares First Advantage and DynTek”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Advantage	$756.89 million	3.79	$37.29 million	$0.22	89.82
DynTek	N/A	N/A	N/A	N/A	N/A

First Advantage has higher revenue and earnings than DynTek.

Analyst Recommendations

This is a breakdown of current ratings and price targets for First Advantage and DynTek, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Advantage	0	3	4	0	2.57
DynTek	0	0	0	0	N/A

First Advantage currently has a consensus price target of $77.25, suggesting a potential upside of 290.94%. Given First Advantage’s higher probable upside, equities analysts plainly believe First Advantage is more favorable than DynTek.

Institutional & Insider Ownership

94.9% of First Advantage shares are held by institutional investors. 5.3% of First Advantage shares are held by company insiders. Comparatively, 4.5% of DynTek shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

First Advantage beats DynTek on 8 of the 8 factors compared between the two stocks.

About First Advantage

First Advantage Corporation provides employment background screening, identity, and verification solutions worldwide. It offers pre-onboarding products and solutions, such as criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening, and other screening products. The company also provides post-onboarding solutions, including criminal records monitoring, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses; and other products comprising fleet/vehicle compliance, hiring tax credits and incentives, resident/tenant screening, and investigative research. Its products and solutions are used by personnel in recruiting, human resources, risk, compliance, vendor management, safety, and/or security in global enterprises, mid-sized, and small companies. The company was formerly known as Fastball Intermediate, Inc. and changed its name to First Advantage Corporation in March 2021. First Advantage Corporation was founded in 2002 and is based in Atlanta, Georgia.

About DynTek

DynTek, Inc. provides professional information technology services to mid-market commercial businesses, state and local government agencies, and educational institutions. It offers infrastructure and data center solutions, including advanced networking, security, server virtualization, and servers and storage solutions; and Microsoft platform solutions comprising management and virtualization, messaging, communications, desktop, data platform, identity and security, portals and collaboration, and midmarket solutions. The company also provides endpoint computing solutions, such as desktop and application, application and desktop virtualization, and desktop management solutions; and talent acquisition and staff augmentation solutions. In addition, it engages in value-added resale of hardware and software products. The company was formerly known as TekInsight, Inc. and changed its name to DynTek, Inc. in December 2001. DynTek, Inc. was founded in 1989 and is headquartered in Newport Beach, California.