Analyzing ManpowerGroup (NYSE:MAN) & HAYS (OTCMKTS:HAYPY)

HAYS (OTCMKTS:HAYPY) and ManpowerGroup (NYSE:MAN) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Profitability

This table compares HAYS and ManpowerGroup’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HAYS	N/A	N/A	N/A
ManpowerGroup	-0.09%	7.98%	2.02%

Risk and Volatility

HAYS has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, ManpowerGroup has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HAYS	$8.55 billion	0.15	-$6.17 million	N/A	N/A
ManpowerGroup	$17.85 billion	0.11	$145.10 million	($0.38)	-108.53

ManpowerGroup has higher revenue and earnings than HAYS.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for HAYS and ManpowerGroup, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HAYS	0	0	0	1	4.00
ManpowerGroup	0	5	0	0	2.00

ManpowerGroup has a consensus target price of $48.20, indicating a potential upside of 16.88%. Given ManpowerGroup’s higher probable upside, analysts plainly believe ManpowerGroup is more favorable than HAYS.

Institutional & Insider Ownership

98.0% of ManpowerGroup shares are owned by institutional investors. 3.1% of ManpowerGroup shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

HAYS pays an annual dividend of $0.19 per share and has a dividend yield of 2.4%. ManpowerGroup pays an annual dividend of $1.44 per share and has a dividend yield of 3.5%. ManpowerGroup pays out -378.9% of its earnings in the form of a dividend.

Summary

ManpowerGroup beats HAYS on 10 of the 14 factors compared between the two stocks.

About HAYS

Hays plc engages in the provision of recruitment services in Australia, New Zealand, Germany, the United Kingdom, Ireland, and internationally. The company provides qualified, professional, and skilled recruitment in permanent, temporary, and contractor formats to public and private sectors. It offers its recruitment services in the specialisms, such as technology, accountancy and finance, engineering, construction and property, office support, life sciences, sales and marketing, and others. Hays plc was founded in 1968 and is based in London, the United Kingdom.

About ManpowerGroup

ManpowerGroup Inc. provides workforce solutions and services worldwide. The company offers recruitment services, including permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions under the Manpower and Experis brands. It also offers various assessment services; training and development services; career and talent management; and outsourcing services related to human resources functions primarily in the areas of large-scale recruiting and workforce-intensive initiatives. In addition, the company provides workforce consulting services; contingent staffing and permanent recruitment services; professional resourcing and project-based services; and recruitment process outsourcing, TAPFIN managed, and talent solutions. The company was incorporated in 1948 and is headquartered in Milwaukee, Wisconsin.