Critical Contrast: Trans Global Group (OTCMKTS:TGGI) versus Quest Resource (NASDAQ:QRHC)

Quest Resource (NASDAQ:QRHC) and Trans Global Group (OTCMKTS:TGGI) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Institutional & Insider Ownership

48.2% of Quest Resource shares are held by institutional investors. 22.9% of Quest Resource shares are held by company insiders. Comparatively, 61.4% of Trans Global Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Quest Resource and Trans Global Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quest Resource	$288.53 million	0.14	-$15.06 million	($1.11)	-1.74
Trans Global Group	N/A	N/A	N/A	N/A	N/A

Trans Global Group has lower revenue, but higher earnings than Quest Resource.

Profitability

This table compares Quest Resource and Trans Global Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quest Resource	-8.89%	-12.96%	-3.70%
Trans Global Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Quest Resource and Trans Global Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quest Resource	1	3	0	0	1.75
Trans Global Group	0	0	0	0	0.00

Quest Resource currently has a consensus target price of $2.25, indicating a potential upside of 16.58%. Given Quest Resource’s stronger consensus rating and higher possible upside, equities analysts clearly believe Quest Resource is more favorable than Trans Global Group.

Volatility and Risk

Quest Resource has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Trans Global Group has a beta of -2.34, meaning that its share price is 334% less volatile than the S&P 500.

Summary

Quest Resource beats Trans Global Group on 5 of the 9 factors compared between the two stocks.

About Quest Resource

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. It offers antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, the company offers landfill diversion services. Its services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. The company markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation is headquartered in The Colony, Texas.

About Trans Global Group

Trans Global Group Inc., through its subsidiary, Shenzhen Zui Xian Gui Brewery Technology Limited, distributes and retails wine under the Zui Xian Gui name in the People's Republic of China. It also sells its products through an online self-operated retail and e-commerce platform. The company is headquartered in Shenzhen, China.