Head to Head Contrast: Adecco Group (AHEXY) versus The Competition

Adecco Group (OTCMKTS: AHEXY) is one of 23 public companies in the “Help supply services” industry, but how does it contrast to its peers? We will compare Adecco Group to similar businesses based on the strength of its risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Profitability

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This table compares Adecco Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adecco Group 3.33% 22.13% 7.98%
Adecco Group Competitors 1.97% 16.27% 6.03%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Adecco Group and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adecco Group 1 0 0 0 1.00
Adecco Group Competitors 74 335 554 11 2.52

As a group, “Help supply services” companies have a potential upside of 9.64%. Given Adecco Group’s peers stronger consensus rating and higher probable upside, analysts plainly believe Adecco Group has less favorable growth aspects than its peers.

Insider & Institutional Ownership

0.2% of Adecco Group shares are held by institutional investors. Comparatively, 62.2% of shares of all “Help supply services” companies are held by institutional investors. 20.3% of shares of all “Help supply services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Adecco Group has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Adecco Group’s peers have a beta of 1.18, meaning that their average stock price is 18% more volatile than the S&P 500.

Dividends

Adecco Group pays an annual dividend of $0.44 per share and has a dividend yield of 1.3%. Adecco Group pays out 16.7% of its earnings in the form of a dividend. As a group, “Help supply services” companies pay a dividend yield of 1.5% and pay out 28.2% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Adecco Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Adecco Group $26.73 billion $890.67 million 13.25
Adecco Group Competitors $4.22 billion $126.12 million 11.17

Adecco Group has higher revenue and earnings than its peers. Adecco Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Adecco Group peers beat Adecco Group on 8 of the 15 factors compared.

About Adecco Group

Adecco Group AG, together with its subsidiaries, provides workforce solutions to businesses and organizations worldwide. The company provides temporary staffing, permanent placement, and outsourcing services for clerical and support personnel in the areas of office-based employment; and candidates for blue collar job profiles across various industrial sectors under the Adecco brand. It also offers professional staffing services in the information technology, and engineering and technical business lines primarily under the brand name of Modis; finance and legal business line under the Badenoch & Clark brand name; and medical and science business line. In addition, the company provides managed service provision and recruitment process outsourcing solutions under the brand name of Pontoon; career transition under the Lee Hecht Harrison brand name; and talent development services, such as leadership coaching, career development programs, assessment and feedback tools, and change management support under the Lee Hecht Harrison brand name. It operated approximately 5,100 branches in 60 countries and territories. The company was formerly known as Adecco S.A. Adecco Group AG was founded in 1957 and is headquartered in Opfikon, Switzerland.

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