Robert Half International (NYSE:RHI) and ManpowerGroup (NYSE:MAN) 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, institutional ownership, earnings, valuation, dividends and profitability.
Institutional & Insider Ownership
90.7% of Robert Half International shares are held by institutional investors. Comparatively, 93.0% of ManpowerGroup shares are held by institutional investors. 2.9% of Robert Half International shares are held by insiders. Comparatively, 1.3% of ManpowerGroup shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Dividends
Robert Half International pays an annual dividend of $1.36 per share and has a dividend yield of 2.0%. ManpowerGroup pays an annual dividend of $2.34 per share and has a dividend yield of 2.5%. Robert Half International pays out 34.9% of its earnings in the form of a dividend. ManpowerGroup pays out 31.4% 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. ManpowerGroup is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Robert Half International has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, ManpowerGroup has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500.
Profitability
This table compares Robert Half International and ManpowerGroup's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Robert Half International | 6.08% | 28.09% | 13.60% |
ManpowerGroup | 0.47% | 9.72% | 2.91% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Robert Half International and ManpowerGroup, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Robert Half International | 1 | 4 | 4 | 0 | 2.33 |
ManpowerGroup | 2 | 1 | 6 | 0 | 2.44 |
Robert Half International presently has a consensus target price of $63.00, indicating a potential downside of 7.77%. ManpowerGroup has a consensus target price of $84.40, indicating a potential downside of 11.43%. Given Robert Half International's higher probable upside, equities analysts plainly believe Robert Half International is more favorable than ManpowerGroup.
Earnings & Valuation
This table compares Robert Half International and ManpowerGroup's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Robert Half International | $6.07 billion | 1.28 | $454.43 million | $3.90 | 17.52 |
ManpowerGroup | $20.86 billion | 0.26 | $465.70 million | $7.45 | 12.79 |
ManpowerGroup has higher revenue and earnings than Robert Half International. ManpowerGroup is trading at a lower price-to-earnings ratio than Robert Half International, indicating that it is currently the more affordable of the two stocks.
Summary
ManpowerGroup beats Robert Half International on 10 of the 16 factors compared between the two stocks.