Comparing Heidrick & Struggles International (NASDAQ:HSII) & Click (NASDAQ:CLIK)

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

Insider & Institutional Ownership

90.1% of Heidrick & Struggles International shares are owned by institutional investors. 1.3% of Heidrick & Struggles International shares are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Heidrick & Struggles International	3.53%	12.38%	5.44%
Click	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings for Heidrick & Struggles International and Click, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heidrick & Struggles International	0	1	1	0	2.50
Click	0	0	0	0	0.00

Heidrick & Struggles International presently has a consensus target price of $47.00, suggesting a potential upside of 11.03%. Given Heidrick & Struggles International’s stronger consensus rating and higher possible upside, analysts clearly believe Heidrick & Struggles International is more favorable than Click.

Valuation and Earnings

This table compares Heidrick & Struggles International and Click”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heidrick & Struggles International	$1.12 billion	0.77	$54.41 million	$0.40	105.83
Click	$6.05 million	6.80	N/A	N/A	N/A

Heidrick & Struggles International has higher revenue and earnings than Click.

Summary

Heidrick & Struggles International beats Click on 9 of the 10 factors compared between the two stocks.

About Heidrick & Struggles International

Heidrick & Struggles International, Inc. engages in provision of leadership consulting, culture shaping and senior-level executive search services. It offers its clients build leadership teams through facilitating the recruitment, management and deployment of senior executives. It operates under the following segments: Americas, Europe, Asia Pacific, Heidrick Consulting, and On Demand Talent Business. The company was founded by Gardner Heidrick and John Struggles in 1953 and is headquartered in Chicago, IL.

About Click

We are a human resources solutions provider, specializing in offering comprehensive human resources solutions in three principal sectors, namely (i) professional solution services, (ii) nursing solution services, and (iii) logistics and other solution services. We primarily focused on talent sourcing and the provision of temporary and permanent personnel to customers. Our primary market is in Hong Kong and our diverse clientele includes accounting and professional firms, Hong Kong listed companies, nursing homes, individual patients, logistics companies and warehouses. We specialize primarily in placing professional accountants and company secretaries, registered nurses and healthcare workers as well as other blue-collar workers, for direct hire and contract staffing roles. — Revenue increased by approximately $1.5 million or 36.1% from $4.2 million in FY2022 to $5.7 million in FY2023 which was mainly attributable to (i) increase in revenue from professional solution services by approximately $1.1 million or 112.5%; (ii) increase in revenue from logistic and other solution services by approximately $0.6 million or 47.2%; countered by (iii) slight decrease in revenue from nursing solution services by approximately $0.2 million or 8.5%. The increase in total revenue in FY2023 was largely driven by the professional solution services segment which represents services provided directly by our in-house employees rather than services provided by independent contractors from our talent pool as in nursing solution services and logistic and other services segments. Professional solution services provided by our Group include (i) the secondment of senior executives such as CFOs and company secretaries to perform compliance, financial reporting and financial management functions for customers; (ii) the provision of accounting and audit professionals to perform audit work under the instruction of Certified Public Accountant firms; and (iii) the provision of corporate finance experts to assist in drafting of documents including circulars, announcements and others for Hong Kong listed companies and listing documents for private companies planning to go public. Our principal executive office is located at Unit 709, 7/F., Ocean Centre, 5 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong. Our registered office in the British Virgin Islands is located at the office of Corporate Registrations Limited, Sea Meadow House (P.O. Box 116), Road Town, Tortola, British Virgin Islands. Our agent for service of process in the U.S. is Cogency Global Inc., located at 122 East 42nd Street, 18th Floor New York, NY.