Adecco Group (OTCMKTS:AHEXY) and Randstad (OTCMKTS:RANJY) Financial Review

Adecco Group (OTCMKTS:AHEXY) and Randstad (OTCMKTS:RANJY) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Adecco Group and Randstad, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adecco Group	2	0	1	0	1.67
Randstad	0	3	0	0	2.00

Adecco Group presently has a consensus target price of $34.12, suggesting a potential upside of 60.26%. Given Adecco Group’s higher probable upside, equities research analysts clearly believe Adecco Group is more favorable than Randstad.

Valuation and Earnings

This table compares Adecco Group and Randstad’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adecco Group	$24.91 billion	0.29	$360.33 million	$1.03	20.67
Randstad	$29.05 billion	0.37	$978.79 million	$2.28	12.78

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

Risk & Volatility

Adecco Group has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Randstad has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Dividends

Adecco Group pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Randstad pays an annual dividend of $1.26 per share and has a dividend yield of 4.3%. Adecco Group pays out 35.0% of its earnings in the form of a dividend. Randstad pays out 55.3% 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.

Profitability

This table compares Adecco Group and Randstad’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adecco Group	1.35%	12.95%	3.88%
Randstad	2.97%	20.65%	8.73%

Summary

Randstad beats Adecco Group on 9 of the 14 factors compared between the two stocks.

About Adecco Group

Adecco Group AG, together with its subsidiaries, provides human resource services to businesses and organizations in Europe, North America, Asia Pacific, South America, and North Africa. It offers flexible placement, permanent placement, outsourcing, training, upskilling and reskilling, career transition and workforce transformation, consulting, tech academy, digital staffing services, and talent advisory and solutions under the Adecco, Adia, General Assembly, Badenoch + Clark, LHH, pontoon, Spring, and Modis. The company also operates Hired, a talent recruitment platform. The company was formerly known as Adecco S.A. Adecco Group AG was founded in 1957 and is based in Zurich, Switzerland.

About Randstad

Randstad N.V. provides solutions in the field of work and human resources (HR) services. It offers temporary staffing and permanent placement services for the light industrial, office and administrative, manufacturing and logistics, and other specialty areas, as well as payroll services. The company also offers on-site solutions for managing a client's workforce with specific skill sets and a fluctuating level of demand for the fast-moving consumer goods, automotive, life sciences, contact centers, manufacturing, and logistics, as well as the administrative and professional segments. In addition, it recruits experienced staff for managerial and professional roles in a range of sectors and disciplines, including IT, engineering, finance, healthcare, HR, education, legal affairs, sales and marketing and communications. Further, the company provides managed services programs, recruitment process outsourcing, outplacement and career development, and online talent acquisition. It has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally. The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018. Randstad N.V. was founded in 1960 and is headquartered in Diemen, the Netherlands.