Hudson Global (NASDAQ: HSON) and Cross Country Healthcare (NASDAQ:CCRN) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Volatility and Risk

Hudson Global has a beta of -0.36, indicating that its share price is 136% less volatile than the S&P 500. Comparatively, Cross Country Healthcare has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Institutional and Insider Ownership

62.1% of Hudson Global shares are owned by institutional investors. Comparatively, 89.7% of Cross Country Healthcare shares are owned by institutional investors. 12.5% of Hudson Global shares are owned by insiders. Comparatively, 4.2% of Cross Country Healthcare shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Hudson Global and Cross Country Healthcare, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hudson Global 0 0 0 0 N/A
Cross Country Healthcare 0 1 4 0 2.80

Cross Country Healthcare has a consensus target price of $16.30, suggesting a potential upside of 32.31%. Given Cross Country Healthcare’s higher possible upside, analysts plainly believe Cross Country Healthcare is more favorable than Hudson Global.

Profitability

This table compares Hudson Global and Cross Country Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hudson Global -0.67% -4.29% -1.76%
Cross Country Healthcare 1.06% 12.78% 6.02%

Valuation & Earnings

This table compares Hudson Global and Cross Country Healthcare’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hudson Global $425.45 million 0.11 $4.00 million ($0.08) -18.50
Cross Country Healthcare $854.40 million 0.53 $38.83 million $0.03 410.67

Cross Country Healthcare has higher revenue and earnings than Hudson Global. Hudson Global is trading at a lower price-to-earnings ratio than Cross Country Healthcare, indicating that it is currently the more affordable of the two stocks.

Summary

Cross Country Healthcare beats Hudson Global on 11 of the 12 factors compared between the two stocks.

Hudson Global Company Profile

Hudson Global, Inc. (Hudson) is a provider of professional-level recruitment and related talent solutions across the world. The Company’s segments include Hudson Americas, Hudson Asia Pacific and Hudson Europe. Its service offerings include Permanent Recruitment, Temporary Contracting, Recruitment Process Outsourcing (RPO) and Talent Management solutions. The Permanent Recruitment services leverage its consultants, supported by its specialists in the delivery of its methods to identify, select and engage the talent. In Temporary Contracting, Hudson provides a range of project management, interim management and professional contract staffing services. Hudson RPO services include complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions and recruitment consulting. Its Talent Management Solutions’ capability encompasses services, such as talent assessment, interview training, executive coaching, employee development and outplacement.

Cross Country Healthcare Company Profile

Cross Country Healthcare, Inc. is engaged in providing healthcare recruiting, staffing, recruiting and workforce solutions. The Company operates in three segments: Nurse and Allied Staffing, Physician Staffing and Other Human Capital Management Services. The Nurse and Allied Staffing segment provides traditional staffing, including temporary and permanent placement of travel nurses and allied professionals, and branch-based local nurses and allied staffing. The Physician Staffing segment provides physicians in various specialties, certified registered nurse anesthetists, nurse practitioners and physician assistants under its Medical Doctor Associates brand. The Other Human Capital Management Services is engaged in providing retained and contingent search services for physicians, healthcare executives, nurses, advanced practice and allied health professionals. It provides multi-specialty locum tenens services, as well as other human capital management services focused on healthcare.

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