Staffing 360 Solutions (STAF) & Robert Half International (RHI) Financial Analysis

Staffing 360 Solutions (NASDAQ: STAF) and Robert Half International (NYSE:RHI) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Dividends

Robert Half International pays an annual dividend of $0.96 per share and has a dividend yield of 2.2%. Staffing 360 Solutions does not pay a dividend. Robert Half International pays out 37.2% of its earnings in the form of a dividend. Staffing 360 Solutions has raised its dividend for 13 consecutive years.

Profitability

This table compares Staffing 360 Solutions and Robert Half International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Staffing 360 Solutions	-3.78%	-86.16%	-12.57%
Robert Half International	6.29%	29.97%	18.02%

Risk & Volatility

Staffing 360 Solutions has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Robert Half International has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Staffing 360 Solutions and Robert Half International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Staffing 360 Solutions	0	0	0	1	4.00
Robert Half International	2	5	2	0	2.00

Staffing 360 Solutions currently has a consensus price target of $2.00, indicating a potential upside of 270.37%. Robert Half International has a consensus price target of $46.14, indicating a potential upside of 4.77%. Given Staffing 360 Solutions’ stronger consensus rating and higher possible upside, research analysts clearly believe Staffing 360 Solutions is more favorable than Robert Half International.

Institutional & Insider Ownership

2.6% of Staffing 360 Solutions shares are owned by institutional investors. Comparatively, 84.7% of Robert Half International shares are owned by institutional investors. 13.8% of Staffing 360 Solutions shares are owned by insiders. Comparatively, 3.4% of Robert Half International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Staffing 360 Solutions and Robert Half International’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Staffing 360 Solutions	$180.94 million	0.05	$4.34 million	($0.69)	-0.78
Robert Half International	$5.20 billion	1.06	$591.57 million	$2.58	17.07

Robert Half International has higher revenue and earnings than Staffing 360 Solutions. Staffing 360 Solutions is trading at a lower price-to-earnings ratio than Robert Half International, indicating that it is currently the more affordable of the two stocks.

Summary

Robert Half International beats Staffing 360 Solutions on 11 of the 17 factors compared between the two stocks.

About Staffing 360 Solutions

Staffing 360 Solutions, Inc. operates in the staffing sector. The Company is engaged in the execution of a global buy-and-build strategy through the acquisition of domestic and international staffing organizations in the United States and the United Kingdom. Its targeted consolidation model is focused on the finance and accounting, administrative, engineering and information technology (IT) staffing space.

About Robert Half International

Robert Half International Inc. provides specialized staffing and risk consulting services. The Company provides these services through its divisions, including Accountemps, Robert Half Finance & Accounting, OfficeTeam, Robert Half Technology, Robert Half Management Resources, Robert Half Legal, The Creative Group and Protiviti. The Company operates through three segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. The temporary and consultant staffing segment provides specialized staffing in the accounting and finance, administrative and office, information technology (IT), legal, advertising, marketing and Web design fields. The permanent placement staffing segment provides full-time personnel in the accounting, finance, administrative and office, and IT fields. The risk consulting and internal audit services segment provides business and technology risk consulting, and internal audit services.