Critical Contrast: Verra Mobility (NASDAQ:VRRM) & Adecco (OTCMKTS:AHEXY)

Adecco (OTCMKTS:AHEXY) and Verra Mobility (NASDAQ:VRRM) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Valuation & Earnings

This table compares Adecco and Verra Mobility”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adecco	$26.11 billion	0.20	$333.76 million	$1.01	14.82
Verra Mobility	$979.08 million	0.54	$136.63 million	$0.26	13.38

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Adecco and Verra Mobility, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adecco	2	3	2	1	2.25
Verra Mobility	1	9	0	0	1.90

Verra Mobility has a consensus target price of $7.00, suggesting a potential upside of 101.15%. Given Verra Mobility’s higher probable upside, analysts plainly believe Verra Mobility is more favorable than Adecco.

Risk & Volatility

Adecco has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Verra Mobility has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Profitability

This table compares Adecco and Verra Mobility’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adecco	1.25%	12.67%	3.62%
Verra Mobility	4.40%	64.39%	11.46%

Summary

Adecco beats Verra Mobility on 8 of the 13 factors compared between the two stocks.

About Adecco

Adecco Group AG, together with its subsidiaries, provides human resource services to businesses and organizations in Europe, North America, Asia Pacific, South America, and North Africa. It offers flexible placement, permanent placement, outsourcing, training, upskilling and reskilling, career transition and workforce transformation, consulting, talent academy, digital staffing solutions under the Adecco, Akkodis, General Assembly, Badenoch + Clark, Lee Hecht Harrison, pontoon, Spring Professional, Adia, Modis, and YOSS brand names. The company also operates Hired, a talent recruitment platform. The company was formerly known as Adecco S.A. Adecco Group AG was founded in 1957 and is based in Zurich, Switzerland.

About Verra Mobility

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Australia, Canada, and Europe. It operates through three segments: Commercial Services, Government Solutions, and Parking Solutions. The Commercial Services segment provides automated toll and violations management, and title and registration services to rental car companies, fleet management companies, and other large fleet owners. The Government Solutions segment offers automated safety solutions to national, state, and local government agencies, including services and technologies that enable photo enforcement through road safety cameras to detect and process traffic violations for red-light, speed, school bus, and city bus lanes. This segment serves municipalities, counties, school districts, and law enforcement agencies. The Parking Solutions segment provides an integrated suite of parking software and hardware solutions to universities, municipalities, parking operators, healthcare facilities, and transportation hubs. Verra Mobility Corporation was incorporated in 2016 and is headquartered in Mesa, Arizona.