Parsons (NYSE:PSN – Get Free Report) and Randstad (OTCMKTS:RANJY – Get Free Report) are both mid-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Profitability
This table compares Parsons and Randstad’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Parsons | 2.50% | 8.10% | 3.75% |
| Randstad | 1.39% | 11.78% | 4.30% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Parsons and Randstad, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Parsons | 2 | 4 | 10 | 0 | 2.50 |
| Randstad | 1 | 6 | 0 | 0 | 1.86 |
Valuation & Earnings
This table compares Parsons and Randstad”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Parsons | $6.29 billion | 0.81 | $241.14 million | $1.45 | 32.81 |
| Randstad | $26.10 billion | 0.30 | $338.29 million | $1.03 | 21.75 |
Randstad has higher revenue and earnings than Parsons. Randstad is trading at a lower price-to-earnings ratio than Parsons, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
98.0% of Parsons shares are held by institutional investors. Comparatively, 0.0% of Randstad shares are held by institutional investors. 1.3% of Parsons shares are held by company 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.
Volatility & Risk
Parsons has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Randstad has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Summary
Parsons beats Randstad on 9 of the 14 factors compared between the two stocks.
About Parsons
Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.
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.
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