MAN vs. RHI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Staffing Firms sector might want to consider either ManpowerGroup (MAN) or Robert Half (RHI). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both ManpowerGroup and Robert Half are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MAN currently has a forward P/E ratio of 19.55, while RHI has a forward P/E of 21.40. We also note that MAN has a PEG ratio of 0.90. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RHI currently has a PEG ratio of 1.38.
Another notable valuation metric for MAN is its P/B ratio of 2.78. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RHI has a P/B of 8.23.
These metrics, and several others, help MAN earn a Value grade of A, while RHI has been given a Value grade of C.
Both MAN and RHI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MAN is the superior value option right now.
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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report
Robert Half International Inc. (RHI) : Free Stock Analysis Report
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