Financial Contrast: Recruit (RCRUY) and Its Competitors

Recruit (OTCMKTS:RCRUY) is one of 205 public companies in the “Professional Services” industry, but how does it compare to its competitors? We will compare Recruit to similar businesses based on the strength of its risk, analyst recommendations, earnings, dividends, valuation, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Recruit and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recruit	0	1	0	0	2.00
Recruit Competitors	1485	6335	9093	481	2.49

As a group, “Professional Services” companies have a potential upside of 37.22%. Given Recruit’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Recruit has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Recruit and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Recruit	$24.56 billion	$3.28 billion	40.58
Recruit Competitors	$3.32 billion	$227.10 million	30.80

Recruit has higher revenue and earnings than its competitors. Recruit is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Recruit has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Recruit’s competitors have a beta of 0.95, indicating that their average stock price is 5% less volatile than the S&P 500.

Dividends

Recruit pays an annual dividend of $0.01 per share and has a dividend yield of 0.0%. Recruit pays out 1.9% of its earnings in the form of a dividend. As a group, “Professional Services” companies pay a dividend yield of 2.6% and pay out -116.4% of their earnings in the form of a dividend. Recruit lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

57.5% of shares of all “Professional Services” companies are owned by institutional investors. 17.1% of shares of all “Professional Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Recruit and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recruit	14.94%	36.40%	21.05%
Recruit Competitors	1.89%	22.34%	4.74%

Summary

Recruit competitors beat Recruit on 8 of the 15 factors compared.

Recruit Company Profile

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.