Financial Survey: On Assignment (ASGN) & Hudson Global (NASDAQ:HSON)

On Assignment (NYSE: ASGN) and Hudson Global (NASDAQ:HSON) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

93.0% of On Assignment shares are held by institutional investors. Comparatively, 62.1% of Hudson Global shares are held by institutional investors. 5.4% of On Assignment shares are held by insiders. Comparatively, 12.2% of Hudson Global shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for On Assignment and Hudson Global, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
On Assignment 0 0 2 0 3.00
Hudson Global 0 0 0 0 N/A

On Assignment presently has a consensus target price of $56.00, suggesting a potential upside of 21.66%. Given On Assignment’s higher probable upside, equities analysts clearly believe On Assignment is more favorable than Hudson Global.

Valuation & Earnings

This table compares On Assignment and Hudson Global’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
On Assignment $2.53 billion 0.96 $263.01 million $2.04 22.56
Hudson Global $425.45 million 0.11 $4.00 million ($0.08) -18.50

On Assignment has higher revenue and earnings than Hudson Global. Hudson Global is trading at a lower price-to-earnings ratio than On Assignment, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares On Assignment and Hudson Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
On Assignment 4.32% 16.71% 8.42%
Hudson Global -0.67% -4.29% -1.76%

Volatility and Risk

On Assignment has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500. Comparatively, Hudson Global has a beta of -0.36, meaning that its stock price is 136% less volatile than the S&P 500.

Summary

On Assignment beats Hudson Global on 11 of the 12 factors compared between the two stocks.

On Assignment Company Profile

On Assignment, Inc. is a global provider of in-demand, skilled professionals in the technology, life sciences and creative sectors. The Company matches resumes with job descriptions to match people they know into positions they understand for temporary, contract-to-hire, and direct hire assignments. It operates through two segments. The Apex segment provides technical, scientific and creative professionals for temporary, contract-to-hire and permanent placement positions and consulting services to clients across the United States. The Apex segment includes Apex Systems, Lab Support and Creative Circle. The Oxford segment provides specialized niche staffing, permanent placement and consulting services in select skill and geographic markets. The Oxford segment includes Oxford Global Resources, CyberCoders and Life Sciences Europe. The Company has a network of branch offices throughout the United States, Canada and Europe.

Hudson Global Company Profile

Hudson Global, Inc. (Hudson) is a provider of professional-level recruitment and related talent solutions across the world. The Company’s segments include Hudson Americas, Hudson Asia Pacific and Hudson Europe. Its service offerings include Permanent Recruitment, Temporary Contracting, Recruitment Process Outsourcing (RPO) and Talent Management solutions. The Permanent Recruitment services leverage its consultants, supported by its specialists in the delivery of its methods to identify, select and engage the talent. In Temporary Contracting, Hudson provides a range of project management, interim management and professional contract staffing services. Hudson RPO services include complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions and recruitment consulting. Its Talent Management Solutions’ capability encompasses services, such as talent assessment, interview training, executive coaching, employee development and outplacement.

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