Robert Half (NYSE:RHI – Get Free Report) and Parsons (NYSE:PSN – Get Free Report) are both mid-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Earnings & Valuation
This table compares Robert Half and Parsons”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Robert Half | $5.30 billion | 0.87 | $132.99 million | $1.21 | 37.14 |
| Parsons | $6.36 billion | 0.84 | $241.14 million | $1.45 | 34.46 |
Parsons has higher revenue and earnings than Robert Half. Parsons is trading at a lower price-to-earnings ratio than Robert Half, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
92.4% of Robert Half shares are held by institutional investors. Comparatively, 98.0% of Parsons shares are held by institutional investors. 3.5% of Robert Half shares are held by company insiders. Comparatively, 1.3% of Parsons shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Robert Half and Parsons’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Robert Half | 2.30% | 9.83% | 4.34% |
| Parsons | 2.50% | 8.10% | 3.75% |
Volatility & Risk
Robert Half has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Parsons has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Robert Half and Parsons, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Robert Half | 3 | 4 | 3 | 0 | 2.00 |
| Parsons | 1 | 4 | 11 | 0 | 2.62 |
Robert Half currently has a consensus target price of $40.75, indicating a potential downside of 9.31%. Parsons has a consensus target price of $63.00, indicating a potential upside of 26.09%. Given Parsons’ stronger consensus rating and higher possible upside, analysts plainly believe Parsons is more favorable than Robert Half.
Summary
Parsons beats Robert Half on 8 of the 14 factors compared between the two stocks.
About Robert Half
Robert Half Inc. provides talent solutions and business consulting services in North America, South America, Europe, Asia, and Australia. The company operates through Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti segments. The Contract Talent Solutions segment provides contract engagement professionals in the fields of finance and accounting, technology, marketing and creative, legal and administrative, and customer support. This segment markets its services to clients and employment candidates through both national and local advertising activities, including radio, digital advertising, job boards, alliance partners, and events. The Permanent Placement Talent Solutions segment engages in the placement of full-time accounting, finance, and tax and accounting operations personnel. The Protiviti segment offers consulting services in the areas of internal audit, technology consulting, risk, and compliance consulting. It offers it services under the Robert Half brand name. The company was formerly known as Robert Half International Inc. and changed its name to Robert Half Inc. in July 2023. Robert Half Inc. was founded in 1948 and is headquartered in Menlo Park, California.
About Parsons
Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.
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