ManpowerGroup (NYSE: MAN) and Robert Half International (NYSE:RHI) are both mid-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
ManpowerGroup 2.24% 17.90% 5.78%
Robert Half International 6.29% 29.97% 18.02%

Analyst Recommendations

This is a summary of recent recommendations for ManpowerGroup and Robert Half International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ManpowerGroup 0 4 3 0 2.43
Robert Half International 2 5 2 0 2.00

ManpowerGroup presently has a consensus price target of $99.00, suggesting a potential downside of 7.35%. Robert Half International has a consensus price target of $46.14, suggesting a potential upside of 6.30%. Given Robert Half International’s higher probable upside, analysts plainly believe Robert Half International is more favorable than ManpowerGroup.

Risk and Volatility

ManpowerGroup has a beta of 1.39, meaning that its share price is 39% more 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.

Earnings & Valuation

This table compares ManpowerGroup and Robert Half International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ManpowerGroup $19.98 billion 0.36 $853.20 million $6.55 16.31
Robert Half International $5.20 billion 1.04 $591.57 million $2.58 16.83

ManpowerGroup has higher revenue and earnings than Robert Half International. ManpowerGroup 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.

Dividends

ManpowerGroup pays an annual dividend of $1.86 per share and has a dividend yield of 1.7%. Robert Half International pays an annual dividend of $0.96 per share and has a dividend yield of 2.2%. ManpowerGroup pays out 28.4% of its earnings in the form of a dividend. Robert Half International pays out 37.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ManpowerGroup has increased its dividend for 6 consecutive years and Robert Half International has increased its dividend for 13 consecutive years. Robert Half International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

93.7% of ManpowerGroup shares are owned by institutional investors. Comparatively, 86.5% of Robert Half International shares are owned by institutional investors. 0.9% of ManpowerGroup shares are owned by company insiders. Comparatively, 3.4% of Robert Half International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Robert Half International beats ManpowerGroup on 9 of the 17 factors compared between the two stocks.

About ManpowerGroup

ManpowerGroup Inc. is a provider of workforce solutions and services. The Company’s segments include Americas, Southern Europe, Northern Europe, Asia Pacific Middle East (APME), Right Management and Corporate. The Company’s Americas segment includes operations in the United States and Other Americas. Its Southern Europe segment includes operations in France, Italy and Other Southern Europe. Its Northern Europe segment includes operations in the United Kingdom, the Nordics, Germany and the Netherlands. The Company’s APME operations provide a range of workforce solutions and services offered through Manpower, Experis and ManpowerGroup Solutions, including permanent, temporary and contract recruitment, assessment and selection, training and outsourcing. The Company’s Right Management segment provides talent and career management workforce solutions. The Company provides services under its Experis brand, particularly in the areas of information technology (IT), engineering and finance.

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.

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