Critical Analysis: TrueBlue (TBI) & Staffing 360 Solutions (STAF)
TrueBlue (NYSE: TBI) and Staffing 360 Solutions (NASDAQ:STAF) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.
This is a breakdown of current recommendations for TrueBlue and Staffing 360 Solutions, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Staffing 360 Solutions||0||0||0||1||4.00|
TrueBlue currently has a consensus price target of $18.67, suggesting a potential downside of 19.54%. Staffing 360 Solutions has a consensus price target of $2.00, suggesting a potential upside of 138.10%. Given Staffing 360 Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Staffing 360 Solutions is more favorable than TrueBlue.
This table compares TrueBlue and Staffing 360 Solutions’ 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%|
Insider and Institutional Ownership
89.8% of TrueBlue shares are owned by institutional investors. Comparatively, 2.5% of Staffing 360 Solutions shares are owned by institutional investors. 2.0% of TrueBlue shares are owned by insiders. Comparatively, 13.8% of Staffing 360 Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares TrueBlue and Staffing 360 Solutions’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TrueBlue||$2.61 billion||0.37||$138.93 million||$1.41||16.45|
|Staffing 360 Solutions||$180.94 million||0.07||$4.34 million||($0.69)||-1.22|
TrueBlue has higher revenue and earnings than Staffing 360 Solutions. Staffing 360 Solutions is trading at a lower price-to-earnings ratio than TrueBlue, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
TrueBlue has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500. Comparatively, Staffing 360 Solutions has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
TrueBlue beats Staffing 360 Solutions on 9 of the 13 factors compared between the two stocks.
TrueBlue, Inc. is a provider of specialized workforce solutions. The Company is engaged in providing staffing, on-site workforce management and recruitment process outsourcing services. The Company operates through three segments: PeopleReady, PeopleManagement and PeopleScout. Its PeopleReady segment provides blue-collar contingent staffing through the PeopleReady service line. Its PeopleManagement segment provides primarily on-premise contingent staffing and on-premise management of those contingent staffing services through four segments: Staff Management a SMX (Staff Management), SIMOS Insourcing Solutions Corporation (SIMOS), Centerline and PlaneTechs. Its PeopleScout segment provides permanent employee recruitment process outsourcing (RPO) and management of outsourced labor service providers through two segments: PeopleScout and PeopleScout MSP.
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.
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