Head to Head Review: DHI Group (NYSE:DHX) and Research Solutions (NASDAQ:RSSS)

DHI Group (NYSE:DHX) and Research Solutions (NASDAQ:RSSS) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Valuation and Earnings

This table compares DHI Group and Research Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHI Group	$141.93 million	0.66	$250,000.00	$0.01	190.50
Research Solutions	$48.21 million	1.95	-$3.79 million	($0.15)	-19.20

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

Insider and Institutional Ownership

69.3% of DHI Group shares are held by institutional investors. Comparatively, 33.6% of Research Solutions shares are held by institutional investors. 15.8% of DHI Group shares are held by company insiders. Comparatively, 12.9% of Research Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares DHI Group and Research Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DHI Group	0.18%	9.21%	4.54%
Research Solutions	-8.41%	-6.59%	-1.96%

Analyst Ratings

This is a summary of current ratings and price targets for DHI Group and Research Solutions, as provided by MarketBeat.

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

DHI Group presently has a consensus price target of $5.25, indicating a potential upside of 175.59%. Research Solutions has a consensus price target of $5.50, indicating a potential upside of 90.97%. Given DHI Group’s higher probable upside, analysts plainly believe DHI Group is more favorable than Research Solutions.

Risk & Volatility

DHI Group has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Research Solutions has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Summary

DHI Group beats Research Solutions on 11 of the 12 factors compared between the two stocks.

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.

About Research Solutions

Research Solutions, Inc., through its subsidiaries, provides research cloud-based software-as-a-service software platform and related services to corporate, academic, government and individual researchers in the United States, Europe, and internationally. It provides Discover platform that facilitates search discovery across virtually all scientific, technical, and medical (STM) articles available, including free basic search solutions and advanced search tools, which include the Resolute.ai and scite.ai products, a tools that allows for searching and identifying relevant research and find insights in other datasets adjacent to STM content, such as clinical trial, patent, life science and medtech regulatory information, competitor and technology landscape insights in addition to searching the customer’s internal datasets. The company also offers Article Galaxy, a solution that allows research organizations to load their entitlements, consisting of subscriptions, discount or token packages, and their existing library of articles. In addition, it provides Manage platform, a references solution that allows users to access the article inside the platform including setting up personal folders or team folders and allows researchers to markup and take notes on the articles in a supported browser on a desktop or tablet. Further, the company’s platform facilitates the sale of published STM content sold as individual articles. The company was formerly known as Derycz Scientific, Inc. and changed its name to Research Solutions, Inc. in March 2013. Research Solutions, Inc. was incorporated in 2006 and is based in Henderson, Nevada.