Analyzing Heidrick & Struggles International (NASDAQ:HSII) & SThree (OTCMKTS:STREF)

SThree (OTCMKTS:STREF) and Heidrick & Struggles International (NASDAQ:HSII) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Earnings and Valuation

This table compares SThree and Heidrick & Struggles International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SThree	$1.91 billion	N/A	$63.51 million	N/A	N/A
Heidrick & Struggles International	$1.12 billion	0.91	$8.73 million	$1.59	30.96

SThree has higher revenue and earnings than Heidrick & Struggles International.

Profitability

This table compares SThree and Heidrick & Struggles International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SThree	N/A	N/A	N/A
Heidrick & Struggles International	2.92%	14.85%	6.24%

Institutional & Insider Ownership

90.1% of Heidrick & Struggles International shares are held by institutional investors. 1.4% of Heidrick & Struggles International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for SThree and Heidrick & Struggles International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SThree	0	0	0	0	0.00
Heidrick & Struggles International	0	1	1	0	2.50

Heidrick & Struggles International has a consensus target price of $51.00, suggesting a potential upside of 3.62%. Given Heidrick & Struggles International’s stronger consensus rating and higher probable upside, analysts plainly believe Heidrick & Struggles International is more favorable than SThree.

Summary

Heidrick & Struggles International beats SThree on 8 of the 10 factors compared between the two stocks.

About SThree

SThree plc provides specialist contract and permanent staffing services for technology, engineering, life sciences, banking and finance, and other sectors. It offers permanent, contract, project, retained, and executive search recruitment solutions, as well as support and mobility services. The company provides its services under the Computer Futures, Progressive, Huxley, Real Staffing Group, Global Enterprise Partners, JP Gray, Madison Black, Newington International, and Orgtel brands. It has operations in the United Kingdom, Germany, the United States, the Netherlands, Japan, Dubai, Belgium, France, Ireland, Luxembourg, Spain, Austria, Switzerland, Hong Kong, Malaysia, Singapore, and internationally. SThree plc was founded in 1986 and is headquartered in London, the United Kingdom.

About Heidrick & Struggles International

Heidrick & Struggles International, Inc. engages in provision of leadership consulting, culture shaping and senior-level executive search services. It offers its clients build leadership teams through facilitating the recruitment, management and deployment of senior executives. It operates under the following segments: Americas, Europe, Asia Pacific, Heidrick Consulting, and On Demand Talent Business. The company was founded by Gardner Heidrick and John Struggles in 1953 and is headquartered in Chicago, IL.