Randstad (OTCMKTS:RANJY – Get Free Report) and ManpowerGroup (NYSE:MAN – Get Free Report) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.
Profitability
This table compares Randstad and ManpowerGroup’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Randstad | 0.37% | 8.81% | 3.21% |
| ManpowerGroup | -0.09% | 7.98% | 2.02% |
Valuation & Earnings
This table compares Randstad and ManpowerGroup”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Randstad | $26.11 billion | 0.29 | $133.10 million | $0.24 | 85.94 |
| ManpowerGroup | $17.85 billion | 0.10 | $145.10 million | ($0.38) | -99.45 |
ManpowerGroup has lower revenue, but higher earnings than Randstad. ManpowerGroup is trading at a lower price-to-earnings ratio than Randstad, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Randstad and ManpowerGroup, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Randstad | 1 | 3 | 0 | 2 | 2.50 |
| ManpowerGroup | 0 | 5 | 0 | 0 | 2.00 |
ManpowerGroup has a consensus price target of $48.20, indicating a potential upside of 27.55%. Given ManpowerGroup’s higher possible upside, analysts clearly believe ManpowerGroup is more favorable than Randstad.
Risk and Volatility
Randstad has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, ManpowerGroup has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.
Dividends
Randstad pays an annual dividend of $0.69 per share and has a dividend yield of 3.3%. ManpowerGroup pays an annual dividend of $1.44 per share and has a dividend yield of 3.8%. Randstad pays out 287.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ManpowerGroup pays out -378.9% of its earnings in the form of a dividend. ManpowerGroup is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
0.0% of Randstad shares are owned by institutional investors. Comparatively, 98.0% of ManpowerGroup shares are owned by institutional investors. 3.1% of ManpowerGroup shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Randstad beats ManpowerGroup on 9 of the 16 factors compared between the two stocks.
About Randstad
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.
About ManpowerGroup
ManpowerGroup Inc. provides workforce solutions and services worldwide. The company offers recruitment services, including permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions under the Manpower and Experis brands. It also offers various assessment services; training and development services; career and talent management; and outsourcing services related to human resources functions primarily in the areas of large-scale recruiting and workforce-intensive initiatives. In addition, the company provides workforce consulting services; contingent staffing and permanent recruitment services; professional resourcing and project-based services; and recruitment process outsourcing, TAPFIN managed, and talent solutions. The company was incorporated in 1948 and is headquartered in Milwaukee, Wisconsin.
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