Financial Contrast: DHI Group (NYSE:DHX) versus Emerald (NYSE:EEX)

Emerald (NYSE:EEX) and DHI Group (NYSE:DHX) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Insider and Institutional Ownership

14.9% of Emerald shares are owned by institutional investors. Comparatively, 69.3% of DHI Group shares are owned by institutional investors. 11.5% of Emerald shares are owned by company insiders. Comparatively, 15.8% of DHI Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Emerald and DHI Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emerald	0	0	2	0	3.00
DHI Group	0	0	2	0	3.00

Emerald currently has a consensus price target of $7.90, suggesting a potential upside of 70.48%. DHI Group has a consensus price target of $5.25, suggesting a potential upside of 79.18%. Given DHI Group’s higher possible upside, analysts plainly believe DHI Group is more favorable than Emerald.

Profitability

This table compares Emerald and DHI Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emerald	-5.29%	-13.26%	-1.92%
DHI Group	0.95%	7.87%	3.80%

Risk and Volatility

Emerald has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, DHI Group has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares Emerald and DHI Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emerald	$393.50 million	2.39	-$8.20 million	($0.54)	-8.58
DHI Group	$151.88 million	0.93	$3.49 million	$0.04	73.27

DHI Group has lower revenue, but higher earnings than Emerald. Emerald is trading at a lower price-to-earnings ratio than DHI Group, indicating that it is currently the more affordable of the two stocks.

Summary

DHI Group beats Emerald on 9 of the 12 factors compared between the two stocks.

About Emerald

Emerald Holding, Inc. operates business-to-business (B2B) trade shows in the United States. The company provides B2B trade show franchises; and B2B print publications and digital media products, which provide industry specific business news and information across various sectors. It also offers B2B e-commerce and digital merchandising solutions to manufacturers and retailers through Elastic Suite and Bulletin platforms. The company serves retail, design, technology, equipment, and safety and security. Emerald Holding, Inc. was incorporated in 2013 and is headquartered in New York, New York.

About DHI Group

DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals and other select online communities in the United States. Its solutions include talent profiles; job postings; employer branding; and other services comprising virtual and live career events, sourcing services, and content and data services that provides tailored content to help professionals manage their careers and provide employers insight into recruiting strategies and trends. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and various other technology and engineering professionals; and ClearanceJobs, an online career community, which matches security-cleared professionals with employers in a secure and private environment to fill the jobs that safeguard its nation. It serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; staffing and consulting firms; and marketing departments of companies, as well as direct hiring companies. The company offers its products and services primarily through its direct sales force and agency partner channel. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1990 and is headquartered in Centennial, Colorado.