Financial Comparison: Experian (OTCMKTS:EXPGY) vs. Recruit (OTCMKTS:RCRUY)

Experian (OTCMKTS:EXPGY) and Recruit (OTCMKTS:RCRUY) are both large-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Dividends

Experian pays an annual dividend of $0.81 per share and has a dividend yield of 1.6%. Recruit pays an annual dividend of $0.02 per share and has a dividend yield of 0.2%. Recruit pays out 5.6% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Experian and Recruit”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Experian	$7.52 billion	6.38	$1.17 billion	N/A	N/A
Recruit	$23.36 billion	4.04	$2.70 billion	$0.36	33.53

Recruit has higher revenue and earnings than Experian.

Volatility & Risk

Experian has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Recruit has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Experian	N/A	N/A	N/A
Recruit	11.49%	22.63%	14.02%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Experian and Recruit, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Experian	0	1	0	1	3.00
Recruit	0	0	1	0	3.00

Insider & Institutional Ownership

0.3% of Experian shares are held by institutional investors. 0.1% of Experian shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Recruit beats Experian on 7 of the 13 factors compared between the two stocks.

About Experian

Experian plc, together with its subsidiaries, operates as a technology company in North America, Latin America, the United Kingdom, Ireland, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Business-to-Business and Consumer Services. The company collects, sorts, aggregates, and transforms data from various sources to provide a range of data-driven services. It also owns, create, and develops analytics, predictive tools, sophisticated software, and platforms; credit risk, fraud prevention, identity management, customer service and engagement, account processing, and account management services; data analysis, and research and development services. In addition, the company provides credit education, free access to Experian credit reports and scores, and online educational tools. It serves its customers in financial service, direct-to-consumer, health, retail, automotive, software and professional services, telecoms and utility, insurance, media and technology, and other industries, as well as government and public sectors. The company was formerly known as Experian Group Limited and changed its name to Experian plc in July 2008. Experian plc was founded in 1826 and is headquartered in Dublin, Ireland.

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.