Investors are weighing the merits of two small-cap business services companies, UMC (OTCMKTS:UMCN) and Black Diamond Group (OTCMKTS:BDIMF). This analysis compares the two firms across various financial metrics including risk, dividends, institutional ownership, earnings, analyst recommendations, profitability, and valuation.
Volatility and Risk Assessment
UMC exhibits a notable level of volatility with a beta of **33.65**, indicating that its share price is **3,265%** more volatile than the S&P 500 index. In stark contrast, Black Diamond Group maintains a beta of **0.64**, suggesting its share price is **36%** less volatile than the S&P 500. This significant difference in volatility may influence investor preference, particularly among those with a lower risk tolerance.
Valuation and Earnings Comparison
When assessing financial performance, Black Diamond Group outshines UMC in terms of both gross revenue and earnings per share (EPS). Although specific figures are not disclosed in this summary, it is clear that Black Diamond Group demonstrates stronger financial metrics compared to UMC, positioning it as a more attractive investment option.
Analyst ratings provide further context for these evaluations. According to MarketBeat, Black Diamond Group receives favorable recommendations, further solidifying its standing against UMC.
Profitability metrics also highlight the differences between the two companies. Black Diamond Group shows superior net margins, return on equity, and return on assets when compared with UMC. This suggests that Black Diamond Group not only generates more revenue but does so more efficiently than its competitor.
Company Overviews
UMC, Inc. specializes in medical insurance claims coding and processing, as well as electronic medical records storage. Founded in **1989** and based in **Pampa, Texas**, UMC primarily serves healthcare providers, including hospitals and medical clinics across the United States. The company, formerly known as United Medicorp, Inc., rebranded to UMC, Inc. in **May 2007**.
On the other hand, Black Diamond Group Limited, established in **2003** and headquartered in **Calgary, Canada**, offers modular space and workforce accommodation solutions. The company operates through two primary segments: Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment provides rentals to various sectors, including construction, education, and healthcare, while the Workforce Solutions segment focuses on workforce housing and associated services in Canada, the United States, and Australia.
Black Diamond Group markets its offerings through a combination of in-house sales personnel, its website, and social media platforms, enhancing its outreach and customer engagement.
Conclusion
In summary, Black Diamond Group consistently outperforms UMC across multiple financial indicators, making it a more compelling investment choice for those considering exposure to these small-cap business services companies. With stronger revenue, earnings, and profitability metrics, Black Diamond Group presents a more stable option for investors in the current market landscape.
