Analyzing ManpowerGroup (NYSE:MAN) and First Advantage (NYSE:FA)

ManpowerGroup (NYSE:MAN) and First Advantage (NYSE:FA) are both mid-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for ManpowerGroup and First Advantage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ManpowerGroup	0	6	3	0	2.33
First Advantage	0	2	3	1	2.83

ManpowerGroup currently has a consensus target price of $53.50, indicating a potential downside of 5.16%. First Advantage has a consensus target price of $23.33, indicating a potential upside of 9.96%. Given First Advantage’s stronger consensus rating and higher possible upside, analysts plainly believe First Advantage is more favorable than ManpowerGroup.

Risk and Volatility

ManpowerGroup has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, First Advantage has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Institutional & Insider Ownership

98.0% of ManpowerGroup shares are held by institutional investors. Comparatively, 94.9% of First Advantage shares are held by institutional investors. 3.0% of ManpowerGroup shares are held by company insiders. Comparatively, 4.4% of First Advantage shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares ManpowerGroup and First Advantage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ManpowerGroup	0.56%	7.45%	1.79%
First Advantage	0.65%	13.16%	7.33%

Earnings and Valuation

This table compares ManpowerGroup and First Advantage”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ManpowerGroup	$17.96 billion	0.15	-$13.30 million	$2.20	25.64
First Advantage	$1.66 billion	2.19	$37.29 million	$0.14	151.57

First Advantage has lower revenue, but higher earnings than ManpowerGroup. ManpowerGroup is trading at a lower price-to-earnings ratio than First Advantage, indicating that it is currently the more affordable of the two stocks.

Summary

First Advantage beats ManpowerGroup on 11 of the 14 factors compared between the two stocks.

About ManpowerGroup

ManpowerGroup Inc. provides workforce solutions and services worldwide. The company offers recruitment services, including permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions under the Manpower and Experis brands. It also offers various assessment services; training and development services; career and talent management; and outsourcing services related to human resources functions primarily in the areas of large-scale recruiting and workforce-intensive initiatives. In addition, the company provides workforce consulting services; contingent staffing and permanent recruitment services; professional resourcing and project-based services; and recruitment process outsourcing, TAPFIN managed, and talent solutions. The company was incorporated in 1948 and is headquartered in Milwaukee, Wisconsin.

About First Advantage

First Advantage Corporation provides employment background screening, identity, and verification solutions worldwide. It offers pre-onboarding products and solutions, such as criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening, and other screening products. The company also provides post-onboarding solutions, including criminal records monitoring, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses; and other products comprising fleet/vehicle compliance, hiring tax credits and incentives, resident/tenant screening, and investigative research. Its products and solutions are used by personnel in recruiting, human resources, risk, compliance, vendor management, safety, and/or security in global enterprises, mid-sized, and small companies. The company was formerly known as Fastball Intermediate, Inc. and changed its name to First Advantage Corporation in March 2021. First Advantage Corporation was founded in 2002 and is based in Atlanta, Georgia.