Analyzing GEE Group (NYSE:JOB) and Recruit (OTCMKTS:RCRUY)

GEE Group (NYSE:JOB) and Recruit (OTCMKTS:RCRUY) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Profitability

This table compares GEE Group and Recruit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GEE Group	-20.77%	-7.66%	-6.84%
Recruit	13.47%	32.62%	18.74%

Risk & Volatility

GEE Group has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Recruit has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.

Institutional & Insider Ownership

30.4% of GEE Group shares are owned by institutional investors. 17.0% of GEE Group shares are owned by company 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 and Valuation

This table compares GEE Group and Recruit”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GEE Group	$87.98 million	0.26	-$24.10 million	N/A	N/A
Recruit	$24.56 billion	4.68	$3.28 billion	$0.92	16.97

Recruit has higher revenue and earnings than GEE Group.

Analyst Recommendations

This is a breakdown of current ratings and target prices for GEE Group and Recruit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GEE Group	0	0	0	0	0.00
Recruit	0	0	0	1	4.00

Summary

Recruit beats GEE Group on 10 of the 12 factors compared between the two stocks.

About GEE Group

GEE Group Inc. provides permanent and temporary professional and industrial staffing and placement services in the United States. The company operates through two segments, Industrial Staffing Services and Professional Staffing Services. It offers placement of information technology, accounting, finance, office, engineering, engineering professionals for direct hire and contract staffing services, and data entry assistants; and temporary staffing services for industrial clients. The company also provides scribes that specialize in electronic medical record services for emergency departments, specialty physician practices, and clinics. It offers professional staffing services under the names of Access, Data Consulting, Agile Resources, Ashley Ellis, GEE Group (Columbus), Omni One, Paladin Consulting, Scribe Solutions, Accounting Now, Staffing Now, SNI Banking, SNI Certes, SNI Energy, SNI Financial, and SNI Technology; and light industrial contract labor under the Triad Staffing brand. The company was formerly known as General Employment Enterprises, Inc. and changed its name to GEE Group Inc. in July 2016. GEE Group Inc. was founded in 1893 and is headquartered in Jacksonville, Florida.

About Recruit

Recruit Holdings Co., Ltd. provides HR technology and business solutions that transforms the world of work. It operates through three segments: HR Technology, Matching & Solutions, and Staffing. The HR Technology segment provides various technological solutions that help job seekers and employers in navigating hiring and recruitment. The Matching & Solutions segment offers HR solutions that support business clients’ recruiting and hiring activities and individual users’ job search activities through its job advertising services and placement services. This segment also provides marketing solutions that provide matching platforms for businesses in various industries, including housing and real estate, beauty, bridal, travel, dining, and others, as well as SaaS solutions, which are business and management support tools for small and medium-sized companies. The Staffing segment provides temporary staffing services in Japan, Europe, the United States, and Australia. Recruit Holdings Co., Ltd. operates in more than 60 countries. The company was formerly known as Recruit Co., Ltd. and changed its name to Recruit Holdings Co., Ltd. in October 2012. Recruit Holdings Co., Ltd. was founded in 1960 and is headquartered in Tokyo, Japan.