Head to Head Comparison: Recruit (OTCMKTS:RCRRF) versus Insperity (NYSE:NSP)

Insperity (NYSE:NSP) and Recruit (OTCMKTS:RCRRF) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Insider & Institutional Ownership

93.4% of Insperity shares are owned by institutional investors. 5.8% of Insperity shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Insperity and Recruit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insperity	2	2	1	0	1.80
Recruit	0	0	0	0	0.00

Insperity presently has a consensus price target of $53.33, suggesting a potential upside of 2.30%. Given Insperity’s stronger consensus rating and higher possible upside, research analysts plainly believe Insperity is more favorable than Recruit.

Profitability

This table compares Insperity and Recruit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insperity	-0.23%	-19.99%	-0.60%
Recruit	10.33%	19.40%	12.59%

Volatility & Risk

Insperity has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Recruit has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.

Earnings and Valuation

This table compares Insperity and Recruit”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insperity	$6.81 billion	0.29	-$7.00 million	($0.43)	-121.25
Recruit	$23.67 billion	6.85	$2.44 billion	$1.54	65.41

Recruit has higher revenue and earnings than Insperity. Insperity is trading at a lower price-to-earnings ratio than Recruit, indicating that it is currently the more affordable of the two stocks.

Summary

Recruit beats Insperity on 9 of the 14 factors compared between the two stocks.

About Insperity

Insperity, Inc. engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses primarily in the United States. It offers its HR services through its workforce optimization and workforce synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services. The company also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; people management services; and employer liability management services, as well as solutions for middle market. In addition, it offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; integrated payroll; benefits administration; HR administration and employee onboarding; time and attendance; performance management; reporting and analytics; recruiting; employment screening; retirement; and insurance services. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas.

About Recruit

Recruit Holdings Co., Ltd. provides HR technology and business solutions that transforms the world of work. It operates through three segments: HR Technology, Matching & Solutions, and Staffing. The HR Technology segment provides various technological solutions that help job seekers and employers in navigating hiring and recruitment. The Matching & Solutions segment offers HR solutions that support business clients’ recruiting and hiring activities and individual users’ job search activities through its job advertising services and placement services. This segment also provides marketing solutions that provide matching platforms for businesses in various industries, including housing and real estate, beauty, bridal, travel, dining, and others, as well as SaaS solutions, which are business and management support tools for small and medium-sized companies. The Staffing segment provides temporary staffing services in Japan, Europe, the United States, and Australia. Recruit Holdings Co., Ltd. operates in more than 60 countries. The company was formerly known as Recruit Co., Ltd. and changed its name to Recruit Holdings Co., Ltd. in October 2012. Recruit Holdings Co., Ltd. was founded in 1960 and is headquartered in Tokyo, Japan.