Hudson Global (HSON) and 51job (JOBS) Financial Analysis

Hudson Global (NASDAQ: HSON) and 51job (NASDAQ:JOBS) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Risk and Volatility

Hudson Global has a beta of -0.39, suggesting that its share price is 139% less volatile than the S&P 500. Comparatively, 51job has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Hudson Global and 51job, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hudson Global 0 0 0 0 N/A
51job 0 0 1 0 3.00

51job has a consensus target price of $60.00, suggesting a potential upside of 1.71%. Given 51job’s higher probable upside, analysts clearly believe 51job is more favorable than Hudson Global.

Institutional & Insider Ownership

62.6% of Hudson Global shares are owned by institutional investors. Comparatively, 39.7% of 51job shares are owned by institutional investors. 12.5% of Hudson Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Hudson Global and 51job’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hudson Global $425.45 million 0.11 $4.00 million ($0.08) -18.38
51job $380.54 million 9.52 $116.09 million $1.35 43.70

51job has higher revenue, but lower earnings than Hudson Global. Hudson Global is trading at a lower price-to-earnings ratio than 51job, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hudson Global and 51job’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hudson Global -0.67% -4.29% -1.76%
51job 21.23% 14.29% 9.19%

Summary

51job beats Hudson Global on 9 of the 12 factors compared between the two stocks.

About Hudson Global

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.

About 51job

51job, Inc. is a holding company. The Company is a provider of integrated human resource services in China. The Company focuses on online recruitment advertising. The Company operates over three Websites, including www.51job.com, www.yingjiesheng.com and www.51jingying.com, which are utilized by a base of corporate employers, reach an audience of job seekers and aggregate job information from over 100 cities across China. The Company provides a range of human resource services in the categories, such as recruitment advertising services, including online recruitment services provided by its Websites, and other human resource related services, including business process outsourcing, training, campus recruitment, professional assessment tools, salary and other human resource related surveys, human resource conferences and executive search services.

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