Comparing Robert Half (NYSE:RHI) & Randstad (OTCMKTS:RANJY)

Randstad (OTCMKTS:RANJY) and Robert Half (NYSE:RHI) are both mid-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Dividends

Randstad pays an annual dividend of $0.69 per share and has a dividend yield of 3.0%. Robert Half pays an annual dividend of $2.36 per share and has a dividend yield of 6.4%. Randstad pays out 287.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Robert Half pays out 134.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Robert Half has raised its dividend for 22 consecutive years. Robert Half is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Randstad has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Robert Half has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares Randstad and Robert Half’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Randstad	0.37%	8.81%	3.21%
Robert Half	3.20%	13.00%	6.27%

Analyst Ratings

This is a summary of current ratings and recommmendations for Randstad and Robert Half, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Randstad	0	2	0	2	3.00
Robert Half	1	4	1	0	2.00

Robert Half has a consensus price target of $45.83, indicating a potential upside of 23.32%. Given Robert Half’s higher possible upside, analysts plainly believe Robert Half is more favorable than Randstad.

Insider & Institutional Ownership

0.0% of Randstad shares are held by institutional investors. Comparatively, 92.4% of Robert Half shares are held by institutional investors. 3.1% of Robert Half shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Randstad and Robert Half”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Randstad	$26.11 billion	0.31	$133.10 million	$0.24	94.56
Robert Half	$5.80 billion	0.65	$251.60 million	$1.75	21.24

Robert Half has lower revenue, but higher earnings than Randstad. Robert Half is trading at a lower price-to-earnings ratio than Randstad, indicating that it is currently the more affordable of the two stocks.

Summary

Robert Half beats Randstad on 13 of the 17 factors compared between the two stocks.

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.

About Robert Half

Robert Half Inc. provides talent solutions and business consulting services in North America, South America, Europe, Asia, and Australia. The company operates through Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti segments. The Contract Talent Solutions segment provides contract engagement professionals in the fields of finance and accounting, technology, marketing and creative, legal and administrative, and customer support. This segment markets its services to clients and employment candidates through both national and local advertising activities, including radio, digital advertising, job boards, alliance partners, and events. The Permanent Placement Talent Solutions segment engages in the placement of full-time accounting, finance, and tax and accounting operations personnel. The Protiviti segment offers consulting services in the areas of internal audit, technology consulting, risk, and compliance consulting. It offers it services under the Robert Half brand name. The company was formerly known as Robert Half International Inc. and changed its name to Robert Half Inc. in July 2023. Robert Half Inc. was founded in 1948 and is headquartered in Menlo Park, California.