Where Food Comes From (NASDAQ:WFCF) versus Hitek Global (NASDAQ:HKIT) Critical Comparison

Hitek Global (NASDAQ:HKIT) and Where Food Comes From (NASDAQ:WFCF) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Insider & Institutional Ownership

1.2% of Hitek Global shares are owned by institutional investors. Comparatively, 18.8% of Where Food Comes From shares are owned by institutional investors. 49.2% of Where Food Comes From shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Hitek Global and Where Food Comes From, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hitek Global	0	0	0	0	N/A
Where Food Comes From	0	0	0	0	N/A

Profitability

This table compares Hitek Global and Where Food Comes From’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hitek Global	N/A	N/A	N/A
Where Food Comes From	8.56%	19.40%	12.48%

Valuation & Earnings

This table compares Hitek Global and Where Food Comes From’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hitek Global	$4.56 million	3.38	$1.05 million	N/A	N/A
Where Food Comes From	$25.14 million	2.43	$2.15 million	$0.38	29.29

Where Food Comes From has higher revenue and earnings than Hitek Global.

Summary

Where Food Comes From beats Hitek Global on 7 of the 8 factors compared between the two stocks.

About Hitek Global

Hitek Global Inc. provides information technology (IT) consulting and solutions to small and medium businesses in various industry sectors in China. It offers anti-counterfeiting tax control system (ACTCS) tax devices, including golden tax disk and printers, ACTCS services, and IT services; and sells software and hardware to large businesses, such as laptops, printers, desktop computers, and related accessories, as well as Internet servers, cameras, and monitors. The company was founded in 1996 and is headquartered in Xiamen, China.

About Where Food Comes From

Where Food Comes From, Inc., together with its subsidiaries, operates as a third-party food verification company in North America. The company operates through Verification and Certification, and Professional Services segments. It conducts on-site and desk audits to verify that claims being made about livestock, food, other specialty crops, and agricultural and aquaculture products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education. It also offers professional services and technology solutions; verification solutions; and consulting services, as well as sells hardware. The company serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is based in Castle Rock, Colorado.