Randstad (OTCMKTS:RANJY) vs. Insperity (NYSE:NSP) Critical Contrast

Insperity (NYSE:NSP) and Randstad (OTCMKTS:RANJY) are both mid-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Valuation & Earnings

This table compares Insperity and Randstad”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insperity	$6.58 billion	0.34	$91.00 million	$1.68	35.60
Randstad	$26.11 billion	0.29	$133.10 million	$0.32	64.88

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

Institutional and Insider Ownership

93.4% of Insperity shares are held by institutional investors. Comparatively, 0.0% of Randstad shares are held by institutional investors. 5.5% of Insperity shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Insperity pays an annual dividend of $2.40 per share and has a dividend yield of 4.0%. Randstad pays an annual dividend of $0.69 per share and has a dividend yield of 3.3%. Insperity pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Randstad pays out 215.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Insperity has increased its dividend for 14 consecutive years. Insperity is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Insperity and Randstad, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insperity	1	2	0	0	1.67
Randstad	0	2	0	1	2.67

Insperity currently has a consensus target price of $80.00, indicating a potential upside of 33.76%. Given Insperity’s higher probable upside, equities research analysts clearly believe Insperity is more favorable than Randstad.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Insperity	0.95%	52.17%	2.87%
Randstad	0.49%	9.48%	3.52%

Risk & Volatility

Insperity has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Randstad has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Summary

Insperity beats Randstad on 10 of the 17 factors compared between the two stocks.

About Insperity

Insperity, Inc. engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses primarily in the United States. It offers its HR services through its workforce optimization and workforce synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services. The company also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; people management services; and employer liability management services, as well as solutions for middle market. In addition, it offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; integrated payroll; benefits administration; HR administration and employee onboarding; time and attendance; performance management; reporting and analytics; recruiting; employment screening; retirement; and insurance services. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas.

About Randstad

Randstad N.V. provides solutions in the field of work and human resources (HR) services. The company provides temporary staffing and permanent placement services; job posting; and résumé services on digital platforms. It offers inhouse, enterprise and digital, and tech suite services. In addition, 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.