Heidrick & Struggles International (NASDAQ:HSII) and ShiftPixy (NASDAQ:PIXY) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Volatility & Risk

Heidrick & Struggles International has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, ShiftPixy has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Earnings & Valuation

This table compares Heidrick & Struggles International and ShiftPixy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heidrick & Struggles International $640.06 million 1.04 -$48.63 million $1.09 32.23
ShiftPixy $20.24 million 5.00 -$7.49 million ($0.28) -12.54

ShiftPixy has lower revenue, but higher earnings than Heidrick & Struggles International. ShiftPixy is trading at a lower price-to-earnings ratio than Heidrick & Struggles International, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

88.6% of Heidrick & Struggles International shares are owned by institutional investors. Comparatively, 1.8% of ShiftPixy shares are owned by institutional investors. 2.6% of Heidrick & Struggles International shares are owned by insiders. Comparatively, 44.8% of ShiftPixy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Heidrick & Struggles International and ShiftPixy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heidrick & Struggles International -0.15% 17.49% 7.12%
ShiftPixy -45.58% -874.51% -196.03%

Dividends

Heidrick & Struggles International pays an annual dividend of $0.52 per share and has a dividend yield of 1.5%. ShiftPixy does not pay a dividend. Heidrick & Struggles International pays out 47.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Heidrick & Struggles International and ShiftPixy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heidrick & Struggles International 0 2 1 0 2.33
ShiftPixy 0 0 0 0 N/A

Heidrick & Struggles International currently has a consensus target price of $40.00, suggesting a potential upside of 13.86%. Given Heidrick & Struggles International’s higher possible upside, analysts plainly believe Heidrick & Struggles International is more favorable than ShiftPixy.

Summary

Heidrick & Struggles International beats ShiftPixy on 11 of the 15 factors compared between the two stocks.

About Heidrick & Struggles International

Heidrick & Struggles International, Inc., together with its subsidiaries, provides executive search, culture shaping, and leadership consulting services on a retained basis to businesses and business leaders in the Americas, Europe, the Asia Pacific, and internationally. The company enables its clients to build leadership teams by facilitating the recruitment, management, and deployment of senior executives. Its leadership consulting services and culture shaping services include leadership assessment; leadership, team, and board development; succession planning; talent strategy; people performance; inter-team collaboration; and organizational transformation. The company serves Fortune 1000 companies; middle market and emerging growth companies; governmental, higher education, and not-for-profit organizations; and other private and public entities. Heidrick & Struggles International, Inc. was founded in 1953 and is headquartered in Chicago, Illinois.

About ShiftPixy

ShiftPixy, Inc. provides employment services for businesses; and workers in shift or other part-time/temporary positions in the United States. The company primarily focuses on the restaurants, hospitality and maintenance services industries. ShiftPixy, Inc. was incorporated in 2015 and is based in Irvine, California.

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