Head-To-Head Review: Heidrick & Struggles International (HSII) versus DHI Group (DHX)
Heidrick & Struggles International (NASDAQ: HSII) and DHI Group (NYSE:DHX) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.
Heidrick & Struggles International pays an annual dividend of $0.52 per share and has a dividend yield of 2.9%. DHI Group does not pay a dividend. Heidrick & Struggles International pays out -96.3% of its earnings in the form of a dividend.
Volatility and Risk
Heidrick & Struggles International has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, DHI Group has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.
This table compares Heidrick & Struggles International and DHI Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Heidrick & Struggles International||-1.66%||8.25%||3.94%|
Earnings & Valuation
This table compares Heidrick & Struggles International and DHI Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Heidrick & Struggles International||$595.56 million||0.57||$55.61 million||($0.54)||-33.61|
|DHI Group||$215.60 million||0.47||$39.50 million||($0.17)||-11.76|
Heidrick & Struggles International has higher revenue and earnings than DHI Group. Heidrick & Struggles International is trading at a lower price-to-earnings ratio than DHI Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Heidrick & Struggles International and DHI Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Heidrick & Struggles International||0||2||0||0||2.00|
Heidrick & Struggles International currently has a consensus target price of $25.00, suggesting a potential upside of 37.74%. DHI Group has a consensus target price of $6.25, suggesting a potential upside of 212.50%. Given DHI Group’s stronger consensus rating and higher probable upside, analysts plainly believe DHI Group is more favorable than Heidrick & Struggles International.
Insider and Institutional Ownership
84.2% of Heidrick & Struggles International shares are held by institutional investors. Comparatively, 84.6% of DHI Group shares are held by institutional investors. 2.4% of Heidrick & Struggles International shares are held by company insiders. Comparatively, 7.2% of DHI Group shares are held by company 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.
About Heidrick & Struggles International
Heidrick & Struggles International, Inc. is an advisory firm providing executive search, leadership consulting and culture shaping services to businesses and business leaders around the world. Its segments include Executive Search, Leadership Consulting and Culture Shaping. It operates its executive search services in three geographic regions: the Americas (which includes the countries in North and South America); Europe (which includes the continents of Europe and Africa), and Asia Pacific (which includes Asia and the region generally known as the Middle East). Its Leadership Consulting segment operates globally. Its Culture Shaping segment operates in the Americas and Europe. In addition to executive search, it provides leadership consulting expertise and culture shaping services including executive leadership assessment; leadership, team and board development; succession planning; talent strategy; people performance; inter-team collaboration, and organizational transformation.
About DHI Group
DHI Group, Inc. provides data, insights and employment connections through specialized services for professional communities, including technology and security clearance, financial services, energy, healthcare and hospitality. The Company’s segments are Tech & Clearance, which includes Dice, Dice Europe and ClearanceJobs; Global Industry Group, which includes eFinancialCareers, Rigzone, Hcareers and BioSpace; Healthcare, which includes Health eCareers, and Corporate & Other, which includes Slashdot Media and Brightmatter. It sells recruitment packages, which allow customers to post jobs and source candidates through its resume databases and, in case of Dice, Dice Europe and eFinancialCareers, to utilize its Open Web search service. Its products and services include resume databases, job postings, open Web, and content and data. Its brands include Dice, Dice Europe, ClearanceJobs, Targeted Job Fairs, eFinancialCareers, Rigzone, BioSpace, Hcareers and Health eCareers.
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