Franklin Covey (NYSE:FC) and DHI Group (NYSE:DHX) Financial Review

DHI Group (NYSE:DHX) and Franklin Covey (NYSE:FC) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Risk and Volatility

DHI Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Franklin Covey has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DHI Group and Franklin Covey, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHI Group	0	2	3	0	2.60
Franklin Covey	1	1	2	0	2.25

DHI Group presently has a consensus price target of $6.75, suggesting a potential upside of 38.15%. Franklin Covey has a consensus price target of $27.50, suggesting a potential upside of 59.74%. Given Franklin Covey’s higher probable upside, analysts clearly believe Franklin Covey is more favorable than DHI Group.

Earnings & Valuation

This table compares DHI Group and Franklin Covey”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHI Group	$127.83 million	1.66	-$13.51 million	$0.03	162.87
Franklin Covey	$267.07 million	0.73	$3.07 million	$0.17	101.27

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

Profitability

This table compares DHI Group and Franklin Covey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DHI Group	0.97%	13.01%	6.46%
Franklin Covey	0.83%	17.37%	4.04%

Institutional and Insider Ownership

69.3% of DHI Group shares are held by institutional investors. Comparatively, 69.9% of Franklin Covey shares are held by institutional investors. 16.2% of DHI Group shares are held by insiders. Comparatively, 15.2% of Franklin Covey shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

DHI Group beats Franklin Covey on 8 of the 14 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 Franklin Covey

Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.