Financial Review: Recruit (RCRUY) & Its Competitors

Recruit (OTCMKTS:RCRUY – Get Free Report) is one of 203 public companies in the “Professional Services” industry, but how does it compare to its peers? We will compare Recruit to similar companies based on the strength of its earnings, profitability, analyst recommendations, dividends, institutional ownership, risk and valuation.

Dividends

Recruit pays an annual dividend of $0.02 per share and has a dividend yield of 0.1%. Recruit pays out 3.8% of its earnings in the form of a dividend. As a group, “Professional Services” companies pay a dividend yield of 2.6% and pay out -172.2% of their earnings in the form of a dividend. Recruit lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Recruit and its peers top-line revenue, earnings per share (EPS) and valuation.

Recruit has higher revenue and earnings than its peers. Recruit is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Recruit and its peers’ net margins, return on equity and return on assets.

Volatility & Risk

Recruit has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Recruit’s peers have a beta of 0.95, meaning that their average share price is 5% less volatile than the S&P 500.

Institutional and Insider Ownership

57.4% of shares of all “Professional Services” companies are held by institutional investors. 17.2% of shares of all “Professional Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Recruit and its peers, as reported by MarketBeat.

As a group, “Professional Services” companies have a potential upside of 43.58%. Given Recruit’s peers stronger consensus rating and higher possible upside, analysts clearly believe Recruit has less favorable growth aspects than its peers.

Summary

Recruit peers beat Recruit on 8 of the 15 factors compared.

Recruit Company Profile

(Get Free Report)

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.