Financial Review: Robert Half (NYSE:RHI) & Hays (OTCMKTS:HAYPF)

Robert Half (NYSE:RHI) and Hays (OTCMKTS:HAYPF) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Valuation & Earnings

This table compares Robert Half and Hays”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Robert Half	$6.39 billion	1.10	$411.15 million	$2.74	24.66
Hays	N/A	N/A	N/A	$0.06	21.29

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

Dividends

Robert Half pays an annual dividend of $2.12 per share and has a dividend yield of 3.1%. Hays pays an annual dividend of $0.03 per share and has a dividend yield of 1.9%. Robert Half pays out 77.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hays pays out 39.4% of its earnings in the form of a dividend. Robert Half has raised its dividend for 21 consecutive years. Robert Half is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Robert Half and Hays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Robert Half	4.84%	18.78%	9.63%
Hays	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for Robert Half and Hays, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Robert Half	2	3	2	0	2.00
Hays	0	0	0	0	N/A

Robert Half presently has a consensus target price of $67.71, suggesting a potential upside of 0.21%. Given Robert Half’s higher probable upside, equities research analysts clearly believe Robert Half is more favorable than Hays.

Insider & Institutional Ownership

92.4% of Robert Half shares are held by institutional investors. Comparatively, 36.8% of Hays shares are held by institutional investors. 3.0% of Robert Half shares are held by 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.

Summary

Robert Half beats Hays on 12 of the 13 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 Hays

Hays plc engages in the provision of recruitment services in Australia, New Zealand, Germany, the United Kingdom, Ireland, and internationally. The company provides qualified, professional, and skilled recruitment in permanent, temporary, and contractor formats to public and private sectors. It offers its recruitment services in the specialisms, such as accountancy and finance, banking and capital markets, construction and property, contact centers, education, energy, oil and gas, engineering and manufacturing, executive, financial services, health and social care, human resources, legal, life sciences, office support, procurement, resources and mining, retail, sales and marketing, sustainability, technology, and telecoms. Hays plc was founded in 1968 and is based in London, the United Kingdom.