Recruit (OTCMKTS:RCRUY – Get Free Report) and Dun & Bradstreet (NYSE:DNB – Get Free Report) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Valuation & Earnings
This table compares Recruit and Dun & Bradstreet”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Recruit | $23.36 billion | 3.83 | $2.70 billion | $0.85 | 13.45 |
| Dun & Bradstreet | $2.38 billion | 1.72 | -$28.60 million | ($0.09) | -101.72 |
Profitability
This table compares Recruit and Dun & Bradstreet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Recruit | 12.00% | 25.24% | 15.29% |
| Dun & Bradstreet | -1.60% | 11.06% | 4.17% |
Dividends
Recruit pays an annual dividend of $0.02 per share and has a dividend yield of 0.2%. Dun & Bradstreet pays an annual dividend of $0.15 per share and has a dividend yield of 1.6%. Recruit pays out 2.4% of its earnings in the form of a dividend. Dun & Bradstreet pays out -166.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dun & Bradstreet is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
86.7% of Dun & Bradstreet shares are held by institutional investors. 10.4% of Dun & Bradstreet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Recruit and Dun & Bradstreet, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Recruit | 0 | 0 | 1 | 0 | 3.00 |
| Dun & Bradstreet | 0 | 6 | 0 | 0 | 2.00 |
Dun & Bradstreet has a consensus price target of $11.63, indicating a potential upside of 27.03%. Given Dun & Bradstreet’s higher possible upside, analysts clearly believe Dun & Bradstreet is more favorable than Recruit.
Risk & Volatility
Recruit has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500. Comparatively, Dun & Bradstreet has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.
Summary
Recruit beats Dun & Bradstreet on 11 of the 16 factors compared between the two stocks.
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.
About Dun & Bradstreet
Dun & Bradstreet Holdings, Inc. engages in providing business decisioning data and analytics solutions. The firm is involved in providing information with its solutions to support its clients with critical business operations. It offers end-to-end solutions to clients in the small business, finance, sales & marketing, third party risk & compliance, and public sectors. The company was founded on August 8, 2018, and is headquartered in Jacksonville, FL.
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