Hudson Global (NASDAQ: HSON) and Staffing 360 Solutions (NASDAQ:STAF) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Insider and Institutional Ownership
61.9% of Hudson Global shares are owned by institutional investors. Comparatively, 2.6% of Staffing 360 Solutions shares are owned by institutional investors. 12.2% of Hudson Global shares are owned by insiders. Comparatively, 13.8% of Staffing 360 Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Hudson Global and Staffing 360 Solutions, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Staffing 360 Solutions||0||0||0||1||4.00|
Staffing 360 Solutions has a consensus target price of $2.00, suggesting a potential upside of 233.22%. Given Staffing 360 Solutions’ higher possible upside, analysts plainly believe Staffing 360 Solutions is more favorable than Hudson Global.
Earnings & Valuation
This table compares Hudson Global and Staffing 360 Solutions’ top-line revenue, earnings per share 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)||-18.25|
|Staffing 360 Solutions||$185.13 million||0.05||$1.96 million||($1.24)||-0.48|
Hudson Global has higher revenue and earnings than Staffing 360 Solutions. Hudson Global is trading at a lower price-to-earnings ratio than Staffing 360 Solutions, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Hudson Global has a beta of -0.36, suggesting that its share price is 136% less volatile than the S&P 500. Comparatively, Staffing 360 Solutions has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.
This table compares Hudson Global and Staffing 360 Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Staffing 360 Solutions||-5.01%||-113.60%||-16.50%|
Hudson Global beats Staffing 360 Solutions on 8 of the 12 factors compared between the two stocks.
About Hudson Global
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.
About Staffing 360 Solutions
Staffing 360 Solutions, Inc. operates in the staffing sector. The Company is engaged in the execution of a global buy-and-build strategy through the acquisition of domestic and international staffing organizations in the United States and the United Kingdom. Its targeted consolidation model is focused on the finance and accounting, administrative, engineering and information technology (IT) staffing space.
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