Reviewing Randstad (OTCMKTS:RANJY) and BGSF (NYSE:BGSF)

BGSF (NYSE:BGSF) and Randstad (OTCMKTS:RANJY) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Profitability

This table compares BGSF and Randstad’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BGSF	-8.99%	-13.69%	-10.60%
Randstad	1.39%	11.76%	4.28%

Analyst Ratings

This is a summary of recent ratings and recommmendations for BGSF and Randstad, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BGSF	1	0	0	0	1.00
Randstad	1	4	0	0	1.80

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BGSF	$92.11 million	0.60	-$11.43 million	($0.74)	-6.96
Randstad	$26.10 billion	0.28	$338.29 million	$1.03	20.21

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

Volatility and Risk

BGSF has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Randstad has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Dividends

BGSF pays an annual dividend of $0.60 per share and has a dividend yield of 11.7%. Randstad pays an annual dividend of $0.73 per share and has a dividend yield of 3.5%. BGSF pays out -81.1% of its earnings in the form of a dividend. Randstad pays out 70.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BGSF is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

37.2% of BGSF shares are held by institutional investors. Comparatively, 0.0% of Randstad shares are held by institutional investors. 8.0% of BGSF shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Randstad beats BGSF on 9 of the 14 factors compared between the two stocks.

About BGSF

BGSF, Inc., together with its subsidiaries, provides consulting, managed services, and professional workforce solutions in the United States. It operates in two segments, Property Management and Professional. The Property Management segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, management services, and other IT workforce solutions. This segment also offers finance, accounting, legal, human resource, and related support personnel. It serves its products to fortune 500 companies, and medium and small companies, as well as consulting companies. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.

About Randstad

Randstad N.V. provides solutions in the field of work and human resources (HR) services. The company provides temporary staffing and permanent placement services; job posting; and résumé services on digital platforms. It offers inhouse, enterprise and digital, and tech suite services. In addition, the company provides managed services programs, recruitment process outsourcing, outplacement and career development, and online talent acquisition. It has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally. The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018. Randstad N.V. was founded in 1960 and is headquartered in Diemen, the Netherlands.