Analyzing Randstad (OTCMKTS:RANJY) & Parsons (NYSE:PSN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Randstad	1.39%	11.78%	4.30%
Parsons	2.50%	8.10%	3.75%

Earnings and Valuation

This table compares Randstad and Parsons”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Randstad	$26.10 billion	0.31	$338.29 million	$1.03	22.04
Parsons	$6.29 billion	0.82	$241.14 million	$1.45	33.32

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

Volatility & Risk

Randstad has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Parsons has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Randstad and Parsons, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Randstad	1	6	0	0	1.86
Parsons	2	4	10	0	2.50

Parsons has a consensus target price of $64.33, suggesting a potential upside of 33.15%. Given Parsons’ stronger consensus rating and higher possible upside, analysts plainly believe Parsons is more favorable than Randstad.

Institutional & Insider Ownership

0.0% of Randstad shares are held by institutional investors. Comparatively, 98.0% of Parsons shares are held by institutional investors. 1.3% of Parsons shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

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

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.

About Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.