Towers Watson & Co (NASDAQ: TW) and DHI Group (NYSE:DHX) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitabiliy, analyst recommendations, earnings and dividends.

Insider and Institutional Ownership

81.2% of DHI Group shares are held by institutional investors. 7.2% of DHI Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Towers Watson & Co and DHI Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Towers Watson & Co 0 0 0 0 N/A
DHI Group 0 4 1 0 2.20

DHI Group has a consensus target price of $6.25, indicating a potential upside of 171.74%. Given DHI Group’s higher probable upside, analysts clearly believe DHI Group is more favorable than Towers Watson & Co.

Earnings & Valuation

This table compares Towers Watson & Co and DHI Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Towers Watson & Co N/A N/A N/A N/A N/A
DHI Group $215.60 million 0.54 $39.50 million ($0.17) -13.53

DHI Group has higher revenue and earnings than Towers Watson & Co.

Profitability

This table compares Towers Watson & Co and DHI Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Towers Watson & Co 13.78% 16.74% 9.29%
DHI Group -3.80% 13.19% 4.55%

Summary

DHI Group beats Towers Watson & Co on 5 of the 8 factors compared between the two stocks.

About Towers Watson & Co

Towers Watson & Co. is a global professional services company. The Company offers consulting, technology and solutions in the areas of benefits, talent management, rewards and risk and capital management. The Company provides clients with services across four business segments: Benefits, Risk and Financial Services, Talent and Rewards and Exchange Solutions. The Company delivers consulting services and solutions, and investment advice and solutions. The Company’s global services include: Program strategy, design and pricing; Employee engagement in health benefits; Health condition management consulting; Pharmacy benefit management consulting; Absence and disability management consulting; Workforce well-being evaluation and wellness and health promotion consulting; Performance measurement and monitoring. The Company provides other services, including product development, predictive modeling, strategies to enter into new markets, claim consulting and catastrophe modeling.

About DHI Group

DHI Group, Inc. provides data, insights and employment connections through specialized services for professional communities, including technology and security clearance, financial services, energy, healthcare and hospitality. The Company’s segments are Tech & Clearance, which includes Dice, Dice Europe and ClearanceJobs; Global Industry Group, which includes eFinancialCareers, Rigzone, Hcareers and BioSpace; Healthcare, which includes Health eCareers, and Corporate & Other. It sells recruitment packages, which allow customers to post jobs and source candidates through its resume databases and, in case of Dice, Dice Europe and eFinancialCareers, to utilize its Open Web search service. Its products and services include resume databases, job postings, open Web, and content and data. Its brands include Dice, Dice Europe, ClearanceJobs, Targeted Job Fairs, eFinancialCareers, Rigzone, BioSpace, Hcareers and Health eCareers.

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