Experian (OTCMKTS:EXPGY) & Randstad (OTCMKTS:RANJY) Critical Analysis

Randstad (OTCMKTS:RANJY) and Experian (OTCMKTS:EXPGY) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Volatility and Risk

Randstad has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Experian has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Randstad	$26.11 billion	0.27	$133.11 million	$0.35	56.32
Experian	$7.10 billion	6.25	$1.20 billion	N/A	N/A

Experian has lower revenue, but higher earnings than Randstad.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Randstad	0.53%	9.79%	3.71%
Experian	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings for Randstad and Experian, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Randstad	0	1	0	2	3.33
Experian	0	1	0	1	3.00

Dividends

Randstad pays an annual dividend of $1.00 per share and has a dividend yield of 5.1%. Experian pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Randstad pays out 285.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

0.0% of Randstad shares are owned by institutional investors. Comparatively, 0.3% of Experian shares are owned by institutional investors. 0.1% of Experian shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Randstad beats Experian on 7 of the 13 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 Experian

Experian plc, together with its subsidiaries, operates as a technology company in North America, Latin America, the United Kingdom, Ireland, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Business-to-Business and Consumer Services. The company collects, sorts, aggregates, and transforms data from various sources to provide a range of data-driven services. It also owns, create, and develops analytics, predictive tools, sophisticated software, and platforms; credit risk, fraud prevention, identity management, customer service and engagement, account processing, and account management services; data analysis, and research and development services. In addition, the company provides credit education, free access to Experian credit reports and scores, and online educational tools. It serves its customers in financial service, direct-to-consumer, health, retail, automotive, software and professional services, telecoms and utility, insurance, media and technology, and other industries, as well as government and public sectors. The company was formerly known as Experian Group Limited and changed its name to Experian plc in July 2008. Experian plc was founded in 1826 and is headquartered in Dublin, Ireland.