Randstad (RANJY) and The Competition Head-To-Head Review

Randstad (OTCMKTS:RANJY) is one of 19 public companies in the “Staffing” industry, but how does it weigh in compared to its peers? We will compare Randstad to related businesses based on the strength of its analyst recommendations, valuation, dividends, institutional ownership, earnings, risk and profitability.

Dividends

Randstad pays an annual dividend of $0.69 per share and has a dividend yield of 3.3%. Randstad pays out 215.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Staffing” companies pay a dividend yield of 3.4% and pay out 138.9% of their earnings in the form of a dividend. Randstad lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of current recommendations for Randstad and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Randstad	0	2	0	1	2.67
Randstad Competitors	91	602	742	45	2.50

As a group, “Staffing” companies have a potential upside of 28.74%. Given Randstad’s peers higher possible upside, analysts plainly believe Randstad has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Randstad and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Randstad	$26.11 billion	$133.10 million	65.88
Randstad Competitors	$4.42 billion	$37.26 million	6.95

Randstad has higher revenue and earnings than its peers. Randstad is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Randstad and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Randstad	0.49%	9.48%	3.52%
Randstad Competitors	-98.39%	-16.17%	-8.84%

Risk and Volatility

Randstad has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Randstad’s peers have a beta of 0.84, meaning that their average stock price is 16% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Randstad shares are held by institutional investors. Comparatively, 64.8% of shares of all “Staffing” companies are held by institutional investors. 16.1% of shares of all “Staffing” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Randstad beats its peers on 9 of the 15 factors compared.

Randstad Company Profile

Randstad N.V. provides solutions in the field of work and human resources (HR) services. The company provides temporary staffing and permanent placement services; job posting; and résumé services on digital platforms. It offers inhouse, enterprise and digital, and tech suite services. In addition, the company provides managed services programs, recruitment process outsourcing, outplacement and career development, and online talent acquisition. It has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally. The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018. Randstad N.V. was founded in 1960 and is headquartered in Diemen, the Netherlands.