Towers Watson & Co (NYSE: WW) and DHI Group (NYSE:DHX) are both executive search services companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Earnings and Valuation

This table compares Towers Watson & Co and DHI Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Towers Watson & Co N/A N/A N/A $6.12 0.01
DHI Group $226.97 million 0.42 -$5.39 million $0.20 9.50

Towers Watson & Co has higher revenue, but lower earnings than DHI Group. Towers Watson & Co is trading at a lower price-to-earnings ratio than DHI Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Towers Watson & Co and DHI Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Towers Watson & Co 13.78% 16.74% 9.29%
DHI Group 4.58% 11.37% 4.09%

Volatility & Risk

Towers Watson & Co has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, DHI Group has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

83.3% of DHI Group shares are owned by institutional investors. 7.2% of DHI Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Towers Watson & Co and DHI Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Towers Watson & Co 0 0 0 0 N/A
DHI Group 0 3 1 0 2.25

DHI Group has a consensus price target of $6.25, indicating a potential upside of 228.95%. Given DHI Group’s higher probable upside, analysts plainly believe DHI Group is more favorable than Towers Watson & Co.

Summary

DHI Group beats Towers Watson & Co on 6 of the 10 factors compared between the two stocks.

About Towers Watson & Co

Towers Watson & Co. is a global professional services company. The Company offers consulting, technology and solutions in the areas of benefits, talent management, rewards and risk and capital management. The Company provides clients with services across four business segments: Benefits, Risk and Financial Services, Talent and Rewards and Exchange Solutions. The Company delivers consulting services and solutions, and investment advice and solutions. The Company’s global services include: Program strategy, design and pricing; Employee engagement in health benefits; Health condition management consulting; Pharmacy benefit management consulting; Absence and disability management consulting; Workforce well-being evaluation and wellness and health promotion consulting; Performance measurement and monitoring. The Company provides other services, including product development, predictive modeling, strategies to enter into new markets, claim consulting and catastrophe modeling.

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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