Comparing Randstad (OTCMKTS:RANJY) and Parsons (NYSE:PSN)

Parsons (NYSE:PSN) and Randstad (OTCMKTS:RANJY) are both mid-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Risk & Volatility

Parsons has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Randstad has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Parsons and Randstad, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parsons	2	4	10	0	2.50
Randstad	1	6	0	0	1.86

Parsons currently has a consensus price target of $64.33, suggesting a potential upside of 35.23%. Given Parsons’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Parsons is more favorable than Randstad.

Insider and Institutional Ownership

98.0% of Parsons shares are owned by institutional investors. Comparatively, 0.0% of Randstad shares are owned by institutional investors. 1.3% of Parsons shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Parsons and Randstad”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parsons	$6.29 billion	0.81	$241.14 million	$1.45	32.81
Randstad	$26.10 billion	0.30	$338.29 million	$1.03	21.75

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

Profitability

This table compares Parsons and Randstad’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parsons	2.50%	8.10%	3.75%
Randstad	1.39%	11.78%	4.30%

Summary

Parsons beats Randstad on 9 of the 14 factors compared between the two stocks.

About Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.

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.