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

Institutional and Insider Ownership

82.5% of Heidrick & Struggles International shares are held by institutional investors. 2.4% of Heidrick & Struggles International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Heidrick & Struggles International pays an annual dividend of $0.52 per share and has a dividend yield of 2.7%. Towers Watson & Co does not pay a dividend. Heidrick & Struggles International pays out -96.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Towers Watson & Co and Heidrick & Struggles International’s gross revenue, earnings per share (EPS) 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
Heidrick & Struggles International $595.56 million 0.60 $55.61 million ($0.54) -35.28

Heidrick & Struggles International has higher revenue and earnings than Towers Watson & Co.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Towers Watson & Co and Heidrick & Struggles International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Towers Watson & Co 0 0 0 0 N/A
Heidrick & Struggles International 0 2 0 0 2.00

Heidrick & Struggles International has a consensus target price of $25.00, indicating a potential upside of 31.23%.

Profitability

This table compares Towers Watson & Co and Heidrick & Struggles International’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%
Heidrick & Struggles International -1.66% 8.25% 3.94%

Summary

Heidrick & Struggles International beats Towers Watson & Co on 5 of the 8 factors compared between the two stocks.

Towers Watson & Co Company Profile

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.

Heidrick & Struggles International Company Profile

Heidrick & Struggles International, Inc. is an advisory firm providing executive search, leadership consulting and culture shaping services to businesses and business leaders around the world. Its segments include Executive Search, Leadership Consulting and Culture Shaping. It operates its executive search services in three geographic regions: the Americas (which includes the countries in North and South America); Europe (which includes the continents of Europe and Africa), and Asia Pacific (which includes Asia and the region generally known as the Middle East). Its Leadership Consulting segment operates globally. Its Culture Shaping segment operates in the Americas and Europe. In addition to executive search, it provides leadership consulting expertise and culture shaping services including executive leadership assessment; leadership, team and board development; succession planning; talent strategy; people performance; inter-team collaboration, and organizational transformation.

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