Randstad (OTCMKTS:RANJY) versus DLH (NASDAQ:DLHC) Head to Head Analysis

DLH (NASDAQ:DLHC) and Randstad (OTCMKTS:RANJY) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DLH	$377.07 million	0.21	$7.40 million	$0.38	14.71
Randstad	$26.11 billion	0.34	$133.10 million	$0.32	77.19

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

Risk & Volatility

DLH has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Randstad has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DLH	1.44%	4.90%	1.71%
Randstad	0.49%	9.48%	3.52%

Analyst Recommendations

This is a summary of recent ratings for DLH and Randstad, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DLH	0	0	0	0	0.00
Randstad	0	2	0	1	2.67

Insider & Institutional Ownership

67.3% of DLH shares are owned by institutional investors. Comparatively, 0.0% of Randstad shares are owned by institutional investors. 15.3% of DLH shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Randstad beats DLH on 8 of the 13 factors compared between the two stocks.

About DLH

DLH Holdings Corp. provides technology-enabled business process outsourcing, program management solutions, and public health research and analytics services in the United States. It offers digital transformation and cyber security solutions, including artificial intelligence and machine learning, cloud enablement, cybersecurity ecosystem, big data analytics, and modeling and simulation to the National Institutes of Health (NIH), the Defense Health Agency, Tele-medicine and Advanced Technology Research Center, and US Navy Naval Information Warfare Center (NIWC). The company also provides science research and development services and solutions, such as data analytics, testing and evaluation, clinical trials research services, and epidemiology studies to support multiple operating divisions, including NIH and the Center for Disease Control and Prevention, as well as the Military Health System. In addition, it offers system engineering and integration solutions in the areas of pharmaceutical delivery logistics, fire protection engineering, biomedical equipment, and technology engineering on behalf of the Department of Veterans Affairs, NIWC, Health and Human Services, and other federal customers. The company also provides business process management services under the trademarks, e-PRAT and SPOT-m, as well as the registered trademark, Infinibyte for cloud-based solutions. The company was formerly known as TeamStaff, Inc. and changed its name to DLH Holdings Corp. in June 2012. DLH Holdings Corp. was incorporated in 1969 and is headquartered in Atlanta, Georgia.

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.