Like TrueBlue, Labor SMART is Growing (TBI, LTNC, PAYX, MAN)

When looking at small cap stocks, it is useful to compare the company with others that have expanded in both share price and size. For those considering investing in the $100 billion staffing industry, the growth of TrueBlue (NYSE: TBI) shows what could be the potential path for Labor SMART (OTCBB: LTNC), as both operate in the $29 billion demand labor sector. Other firms have done well in the staffing industry include Paychex (NASDAQ: PAYX) and ManPower Group (NYSE: MAN).

The staffing industry has done well, with the share prices for TrueBlue, ManPowerGroup, and Paychex surging in recent market action.

For 2013, TrueBlue has risen more than 43%. Over the same period, ManpowerGroup has soared more than 70%. Year to date, the stock price of Paychex is higher by about one-third.

Quarterly sales growth is up nearly 20% for TrueBlue. On the same basis, earnings-per-share growth is higher by more than 70% for ManpowerGroup. The profit margin at Paychex is now 24.50%, more than double that for the average for a member of the Standard & Poor's 500 Index.

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Business is booming at Labor SMART, too.

For August, revenues were 175% more than the month from a year ago. For the month, Labor SMART added more than 100 new clients. The client roster of Labor SMART ranges from small businesses to Fortune 100 companies.

Unlike TrueBlue, Paychex, and ManpowerGroup, the stock price has not soared for Labor SMART. That is a tremendous opportunity for investors to buy a small cap at a low price with growing revenues in a growing industry. Now trading around $25 a share, TrueBlue was at $2.25 in March 1997. The ascension of TrueBlue shows the potential for Labor SMART for long term investors.

The revenues for just August alone for Labor SMART are now almost half its market capitalization.

That points to investors how undervalued the stock is at its current level. On a price-to-sales ratio, Labor SMART is selling at more than a 50% discount. WIth revenues and clients increasing, the share price should be too for Labor Smart.