Recruit (OTCMKTS:RCRUY – Get Free Report) and Parsons (NYSE:PSN – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Recruit and Parsons, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Recruit | 0 | 1 | 0 | 1 | 3.00 |
| Parsons | 1 | 4 | 11 | 0 | 2.62 |
Parsons has a consensus target price of $64.33, suggesting a potential upside of 27.30%. Given Parsons’ higher probable upside, analysts clearly believe Parsons is more favorable than Recruit.
Insider and Institutional Ownership
98.0% of Parsons shares are owned by institutional investors. 1.3% of Parsons 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.
Profitability
This table compares Recruit and Parsons’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Recruit | 14.94% | 35.54% | 20.88% |
| Parsons | 2.33% | 8.11% | 3.74% |
Volatility and Risk
Recruit has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Parsons has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.
Earnings and Valuation
This table compares Recruit and Parsons”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Recruit | $24.56 billion | 7.07 | $3.28 billion | $0.52 | 45.38 |
| Parsons | $6.36 billion | 0.84 | $241.14 million | $1.37 | 36.89 |
Recruit has higher revenue and earnings than Parsons. Parsons is trading at a lower price-to-earnings ratio than Recruit, indicating that it is currently the more affordable of the two stocks.
Summary
Recruit beats Parsons on 10 of the 15 factors compared between the two stocks.
About Recruit
Recruit Holdings Co., Ltd. is a Japan-based technology and services company that connects people with jobs and helps businesses find workers and customers. Its operations include online recruitment platforms, staffing services and digital platforms that match consumers with businesses. The company operates Indeed and Glassdoor, which provide job search, recruitment and workplace information services. In Japan, its platforms serve areas such as housing, travel, beauty, dining and automotive services, while its staffing business provides recruitment and temporary staffing services.
About Parsons
Parsons Corporation is a technology-focused engineering and infrastructure company serving government and commercial clients. Its work includes engineering, construction management, program management, and technical services for complex projects and missions. The company operates through its Federal Solutions and Critical Infrastructure businesses. Federal Solutions provides services in areas such as defense, intelligence, cybersecurity, space, and missile defense. Critical Infrastructure supports projects involving transportation, water, environmental remediation, and other essential infrastructure.
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