Head to Head Analysis: Heidrick & Struggles International (NASDAQ:HSII) & Cross Country Healthcare (NASDAQ:CCRN)
by Michael Walen · The Markets DailyHeidrick & Struggles International (NASDAQ:HSII – Get Free Report) and Cross Country Healthcare (NASDAQ:CCRN – Get Free Report) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
Insider & Institutional Ownership
90.1% of Heidrick & Struggles International shares are owned by institutional investors. Comparatively, 96.0% of Cross Country Healthcare shares are owned by institutional investors. 1.4% of Heidrick & Struggles International shares are owned by company insiders. Comparatively, 5.4% of Cross Country Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Heidrick & Struggles International and Cross Country Healthcare”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Heidrick & Struggles International | $1.22 billion | 1.01 | $8.73 million | $1.71 | 34.51 |
| Cross Country Healthcare | $1.34 billion | 0.20 | -$14.56 million | ($0.49) | -16.33 |
Heidrick & Struggles International has higher earnings, but lower revenue than Cross Country Healthcare. Cross Country Healthcare is trading at a lower price-to-earnings ratio than Heidrick & Struggles International, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for Heidrick & Struggles International and Cross Country Healthcare, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heidrick & Struggles International | 0 | 3 | 0 | 0 | 2.00 |
| Cross Country Healthcare | 1 | 5 | 2 | 0 | 2.13 |
Heidrick & Struggles International presently has a consensus target price of $59.00, suggesting a potential downside of 0.02%. Cross Country Healthcare has a consensus target price of $11.38, suggesting a potential upside of 42.21%. Given Cross Country Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Cross Country Healthcare is more favorable than Heidrick & Struggles International.
Risk & Volatility
Heidrick & Struggles International has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Cross Country Healthcare has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.
Profitability
This table compares Heidrick & Struggles International and Cross Country Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Heidrick & Struggles International | 3.04% | 15.18% | 6.30% |
| Cross Country Healthcare | -1.39% | 0.95% | 0.70% |
Summary
Heidrick & Struggles International beats Cross Country Healthcare on 8 of the 14 factors compared between the two stocks.
About Heidrick & Struggles International
Heidrick & Struggles International, Inc. engages in provision of leadership consulting, culture shaping and senior-level executive search services. It offers its clients build leadership teams through facilitating the recruitment, management and deployment of senior executives. It operates under the following segments: Americas, Europe, Asia Pacific, Heidrick Consulting, and On Demand Talent Business. The company was founded by Gardner Heidrick and John Struggles in 1953 and is headquartered in Chicago, IL.
About Cross Country Healthcare
Cross Country Healthcare, Inc. provides talent management and other consultative services for healthcare clients in the United States. The company’s Nurse and Allied Staffing segment provides traditional staffing, recruiting, and value-added total talent solutions, including temporary and permanent placement of travel and local nurse and, allied professionals; temporary placement of healthcare leaders within nursing, allied, physician, and human resources; vendor neutral and managed services programs; education healthcare services; in-home care services; and outsourcing services. It also offers staffing solutions for registered nurses, licensed practical nurses, certified nurse assistants, practitioners, pharmacists, and other allied professionals on per diem and short-term assignments; and clinical and non-clinical professionals on long-term contract assignments, as well as workforce solutions, including MSP, VMS, in- home care, education healthcare, RPO, project management, and other outsourcing and consultative services. This segment provides retained search services for healthcare professionals, as well as contingent search and recruitment process outsourcing services. It serves public and private acute care and non-acute care hospitals, government facilities, local and national healthcare plans, managed care providers, public and charter schools, outpatient clinics, ambulatory care facilities, physician practice groups, and other healthcare providers under the Cross Country brand. Its Physician Staffing segment provides physicians in various specialties, certified registered nurse anesthetists, nurse practitioners, and physician assistants under the Cross Country Locums brand on temporary assignments. It serves various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The company was founded in 1986 and is headquartered in Boca Raton, Florida.