Analyzing Franklin Covey (NYSE:FC) & ManpowerGroup (NYSE:MAN)

Franklin Covey (NYSE:FC) and ManpowerGroup (NYSE:MAN) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Covey	$267.07 million	0.75	$3.07 million	$0.17	104.68
ManpowerGroup	$17.96 billion	0.15	-$13.30 million	$2.20	26.32

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

Volatility & Risk

Franklin Covey has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, ManpowerGroup has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

69.9% of Franklin Covey shares are held by institutional investors. Comparatively, 98.0% of ManpowerGroup shares are held by institutional investors. 15.2% of Franklin Covey shares are held by insiders. Comparatively, 3.0% of ManpowerGroup shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Franklin Covey and ManpowerGroup’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Covey	0.83%	17.37%	4.04%
ManpowerGroup	0.56%	7.45%	1.79%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Franklin Covey and ManpowerGroup, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Covey	1	1	2	0	2.25
ManpowerGroup	0	6	3	0	2.33

Franklin Covey presently has a consensus target price of $27.50, indicating a potential upside of 54.54%. ManpowerGroup has a consensus target price of $53.50, indicating a potential downside of 7.60%. Given Franklin Covey’s higher possible upside, analysts plainly believe Franklin Covey is more favorable than ManpowerGroup.

Summary

Franklin Covey beats ManpowerGroup on 9 of the 14 factors compared between the two stocks.

About Franklin Covey

Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.

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.