Comparing FTI Consulting (NYSE:FCN) and Recruit (OTCMKTS:RCRRF)

Recruit (OTCMKTS:RCRRF) and FTI Consulting (NYSE:FCN) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Volatility and Risk

Recruit has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, FTI Consulting has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500.

Institutional & Insider Ownership

99.4% of FTI Consulting shares are owned by institutional investors. 1.8% of FTI Consulting shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Recruit and FTI Consulting”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recruit	$23.67 billion	5.27	$2.44 billion	$1.54	50.35
FTI Consulting	$3.92 billion	1.22	$270.87 million	$8.27	19.18

Recruit has higher revenue and earnings than FTI Consulting. FTI Consulting is trading at a lower price-to-earnings ratio than Recruit, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Recruit and FTI Consulting, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recruit	0	0	0	0	0.00
FTI Consulting	0	2	0	0	2.00

FTI Consulting has a consensus price target of $174.50, indicating a potential upside of 10.01%. Given FTI Consulting’s stronger consensus rating and higher probable upside, analysts clearly believe FTI Consulting is more favorable than Recruit.

Profitability

This table compares Recruit and FTI Consulting’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recruit	10.33%	19.40%	12.59%
FTI Consulting	6.44%	15.91%	7.35%

Summary

Recruit beats FTI Consulting on 8 of the 13 factors compared between the two stocks.

About Recruit

Recruit Holdings Co., Ltd. provides HR technology and business solutions that transforms the world of work. It operates through three segments: HR Technology, Matching & Solutions, and Staffing. The HR Technology segment provides various technological solutions that help job seekers and employers in navigating hiring and recruitment. The Matching & Solutions segment offers HR solutions that support business clients’ recruiting and hiring activities and individual users’ job search activities through its job advertising services and placement services. This segment also provides marketing solutions that provide matching platforms for businesses in various industries, including housing and real estate, beauty, bridal, travel, dining, and others, as well as SaaS solutions, which are business and management support tools for small and medium-sized companies. The Staffing segment provides temporary staffing services in Japan, Europe, the United States, and Australia. Recruit Holdings Co., Ltd. operates in more than 60 countries. The company was formerly known as Recruit Co., Ltd. and changed its name to Recruit Holdings Co., Ltd. in October 2012. Recruit Holdings Co., Ltd. was founded in 1960 and is headquartered in Tokyo, Japan.

About FTI Consulting

FTI Consulting, Inc. provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide. The company operates through Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications segments. The Corporate Finance & Restructuring segment provides business transformation and strategy, transactions, and turnaround and restructuring services. The Forensic and Litigation Consulting segment offers construction and environmental solutions, data and analytics, disputes, health solutions, and risk and investigation services. The Economic Consulting segment provides antitrust and competition economics, financial economics, and international arbitration services. The Technology segment offers corporate legal department consulting; e-discovery and expertise; and information governance, privacy, and security services. The Strategic Communications segment provides corporate reputation, financial communications, and public affairs services. It serves aerospace and defense, airlines and aviation, blockchain and digital assets, chemicals, construction and environmental solutions, energy, financial services, food and agriculture, healthcare and life sciences, hospitality, gaming and leisure, automotive and industrial, insurance, mining, private equity, power and renewable, public sector and government contracts, real estate, retail and consumer products, telecom, media and technology, and transportation and logistics sectors. FTI Consulting, Inc. was incorporated in 1982 and is headquartered in Washington, the District of Columbia.