Analyzing Randstad (RANJY) & Its Competitors

Randstad (OTCMKTS:RANJY) is one of 19 public companies in the “Staffing” industry, but how does it weigh in compared to its competitors? We will compare Randstad to similar companies based on the strength of its profitability, dividends, earnings, analyst recommendations, valuation, institutional ownership and risk.

Dividends

Randstad pays an annual dividend of $0.69 per share and has a dividend yield of 3.1%. Randstad pays out 215.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Staffing” companies pay a dividend yield of 3.3% and pay out 138.9% of their earnings in the form of a dividend. Randstad lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

0.0% of Randstad shares are owned by institutional investors. Comparatively, 64.8% of shares of all “Staffing” companies are owned by institutional investors. 18.9% of shares of all “Staffing” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Randstad and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Randstad	0	2	0	1	2.67
Randstad Competitors	91	602	742	45	2.50

As a group, “Staffing” companies have a potential upside of 27.07%. Given Randstad’s competitors higher probable upside, analysts clearly believe Randstad has less favorable growth aspects than its competitors.

Profitability

This table compares Randstad and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Randstad	0.49%	9.48%	3.52%
Randstad Competitors	-98.39%	-16.17%	-8.84%

Risk & Volatility

Randstad has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Randstad’s competitors have a beta of 0.84, suggesting that their average share price is 16% less volatile than the S&P 500.

Earnings & Valuation

This table compares Randstad and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Randstad	$26.11 billion	$133.10 million	70.33
Randstad Competitors	$4.43 billion	$37.26 million	7.49

Randstad has higher revenue and earnings than its competitors. Randstad is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Randstad beats its competitors on 9 of the 15 factors compared.

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.