Critical Contrast: Hudson Global (HSON) & Staffing 360 Solutions (STAF)

Staffing 360 Solutions (NASDAQ: STAF) and Hudson Global (NASDAQ:HSON) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Valuation & Earnings

This table compares Staffing 360 Solutions and Hudson Global’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Staffing 360 Solutions $180.94 million 0.04 $4.34 million ($0.69) -0.80
Hudson Global $425.45 million 0.11 $4.00 million ($0.08) -18.50

Staffing 360 Solutions has higher revenue, but lower earnings than Hudson Global. Hudson Global is trading at a lower price-to-earnings ratio than Staffing 360 Solutions, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

2.6% of Staffing 360 Solutions shares are owned by institutional investors. Comparatively, 62.1% of Hudson Global shares are owned by institutional investors. 13.8% of Staffing 360 Solutions shares are owned by company insiders. Comparatively, 12.2% of Hudson Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Staffing 360 Solutions has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Hudson Global has a beta of -0.36, indicating that its share price is 136% less volatile than the S&P 500.

Profitability

This table compares Staffing 360 Solutions and Hudson Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Staffing 360 Solutions -3.78% -86.16% -12.57%
Hudson Global -0.67% -4.29% -1.76%

Analyst Ratings

This is a summary of recent recommendations for Staffing 360 Solutions and Hudson Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Staffing 360 Solutions 0 0 0 1 4.00
Hudson Global 0 0 0 0 N/A

Staffing 360 Solutions currently has a consensus target price of $2.00, suggesting a potential upside of 263.83%. Given Staffing 360 Solutions’ higher probable upside, equities research analysts clearly believe Staffing 360 Solutions is more favorable than Hudson Global.

Summary

Hudson Global beats Staffing 360 Solutions on 7 of the 12 factors compared between the two stocks.

Staffing 360 Solutions Company Profile

Staffing 360 Solutions, Inc. operates in the staffing sector. The Company is engaged in the execution of a global buy-and-build strategy through the acquisition of domestic and international staffing organizations in the United States and the United Kingdom. Its targeted consolidation model is focused on the finance and accounting, administrative, engineering and information technology (IT) staffing space.

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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