Robert Half International (RHI) vs. ManpowerGroup (NYSE:MAN) Critical Review
Robert Half International (NYSE: RHI) and ManpowerGroup (NYSE:MAN) are both mid-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
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|
|Robert Half International||6.29%||29.97%||18.02%|
This is a summary of recent ratings for Robert Half International and ManpowerGroup, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Robert Half International||2||5||2||0||2.00|
Robert Half International presently has a consensus price target of $46.14, suggesting a potential upside of 6.30%. ManpowerGroup has a consensus price target of $99.00, suggesting a potential downside of 7.35%. Given Robert Half International’s higher probable upside, equities research analysts clearly believe Robert Half International is more favorable than ManpowerGroup.
Risk and Volatility
Robert Half International has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, ManpowerGroup has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.
Earnings & Valuation
This table compares Robert Half International and ManpowerGroup’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Robert Half International||$5.20 billion||1.04||$591.57 million||$2.58||16.83|
|ManpowerGroup||$19.98 billion||0.36||$853.20 million||$6.55||16.31|
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.
Robert Half International pays an annual dividend of $0.96 per share and has a dividend yield of 2.2%. ManpowerGroup pays an annual dividend of $1.86 per share and has a dividend yield of 1.7%. Robert Half International pays out 37.2% of its earnings in the form of a dividend. ManpowerGroup pays out 28.4% 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. Robert Half International has increased its dividend for 6 consecutive years and ManpowerGroup has increased its dividend for 13 consecutive years.
Insider & Institutional Ownership
86.5% of Robert Half International shares are held by institutional investors. Comparatively, 93.7% of ManpowerGroup shares are held by institutional investors. 3.4% of Robert Half International shares are held by insiders. Comparatively, 0.9% of ManpowerGroup shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
ManpowerGroup beats Robert Half International on 9 of the 17 factors compared between the two stocks.
About Robert Half International
Robert Half International Inc. provides specialized staffing and risk consulting services. The Company provides these services through its divisions, including Accountemps, Robert Half Finance & Accounting, OfficeTeam, Robert Half Technology, Robert Half Management Resources, Robert Half Legal, The Creative Group and Protiviti. The Company operates through three segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. The temporary and consultant staffing segment provides specialized staffing in the accounting and finance, administrative and office, information technology (IT), legal, advertising, marketing and Web design fields. The permanent placement staffing segment provides full-time personnel in the accounting, finance, administrative and office, and IT fields. The risk consulting and internal audit services segment provides business and technology risk consulting, and internal audit services.
ManpowerGroup Inc. is a provider of workforce solutions and services. The Company’s segments include Americas, Southern Europe, Northern Europe, Asia Pacific Middle East (APME), Right Management and Corporate. The Company’s Americas segment includes operations in the United States and Other Americas. Its Southern Europe segment includes operations in France, Italy and Other Southern Europe. Its Northern Europe segment includes operations in the United Kingdom, the Nordics, Germany and the Netherlands. The Company’s APME operations provide a range of workforce solutions and services offered through Manpower, Experis and ManpowerGroup Solutions, including permanent, temporary and contract recruitment, assessment and selection, training and outsourcing. The Company’s Right Management segment provides talent and career management workforce solutions. The Company provides services under its Experis brand, particularly in the areas of information technology (IT), engineering and finance.
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