Engility Holdings (NYSE: EGL) and DLH Holdings Corp. (NASDAQ:DLHC) are both small-cap aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their profitabiliy, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.
This is a breakdown of recent ratings and recommmendations for Engility Holdings and DLH Holdings Corp., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DLH Holdings Corp.||0||0||2||0||3.00|
Engility Holdings currently has a consensus target price of $35.00, suggesting a potential upside of 18.04%. DLH Holdings Corp. has a consensus target price of $6.75, suggesting a potential upside of 18.01%. Given Engility Holdings’ higher probable upside, analysts plainly believe Engility Holdings is more favorable than DLH Holdings Corp..
Risk & Volatility
Engility Holdings has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500. Comparatively, DLH Holdings Corp. has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.
This table compares Engility Holdings and DLH Holdings Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DLH Holdings Corp.||4.13%||14.32%||6.82%|
Earnings & Valuation
This table compares Engility Holdings and DLH Holdings Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Engility Holdings||$2.04 billion||0.53||$192.00 million||($0.03)||-988.33|
|DLH Holdings Corp.||$108.13 million||0.60||$7.68 million||$0.38||15.05|
Engility Holdings has higher revenue and earnings than DLH Holdings Corp.. Engility Holdings is trading at a lower price-to-earnings ratio than DLH Holdings Corp., indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
92.0% of Engility Holdings shares are held by institutional investors. Comparatively, 51.0% of DLH Holdings Corp. shares are held by institutional investors. 0.4% of Engility Holdings shares are held by company insiders. Comparatively, 21.6% of DLH Holdings Corp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
DLH Holdings Corp. beats Engility Holdings on 7 of the 13 factors compared between the two stocks.
About Engility Holdings
Engility Holdings, Inc. (Engility) is a provider of systems engineering services, training, program management, and operational support for the United States Government worldwide. The Company’s business is focused on providing a range of engineering, technical, analytical, advisory, training, logistics and support services. The Company operates in two segments: Professional Support Services and Mission Support Services. The Professional Support Services segment provides Systems Engineering and Technical Assistance (SETA) services, program management support and software engineering lifecycle sustainment and support services. Through its Mission Support Services segment, it provides capabilities, such as defense related training, education and support services, law enforcement training, national security infrastructure and institutional development. In January 2014, Engility Holdings Inc completed the acquisition of Dynamics Research Corp.
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