Critical Contrast: The Adecco Group (AHEXY) vs. Its Peers

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

Valuation and Earnings

This table compares The Adecco Group and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
The Adecco Group $26.73 billion $890.67 million 13.21
The Adecco Group Competitors $4.22 billion $125.65 million 11.73



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

Insider & Institutional Ownership

0.2% of The Adecco Group shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Help supply services” companies are owned by institutional investors. 20.3% of shares of all “Help supply services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

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

Profitability

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

Net Margins Return on Equity Return on Assets
The Adecco Group 3.34% 22.19% 8.00%
The Adecco Group Competitors 1.78% -1.82% 5.49%

Analyst Recommendations

This is a summary of current ratings for The Adecco Group and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Adecco Group 1 0 0 0 1.00
The Adecco Group Competitors 73 338 562 11 2.52

As a group, “Help supply services” companies have a potential upside of 5.84%. Given The Adecco Group’s competitors stronger consensus rating and higher possible upside, analysts clearly believe The Adecco Group has less favorable growth aspects than its competitors.

Dividends

The Adecco Group pays an annual dividend of $0.44 per share and has a dividend yield of 1.3%. The 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 1.4% and pay out 28.2% of their earnings in the form of a dividend.

Summary

The Adecco Group competitors beat The Adecco Group on 8 of the 15 factors compared.

The Adecco Group Company Profile

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.

Receive News & Ratings for The Adecco Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for The Adecco Group and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply