Reviewing Randstad (OTCMKTS:RANJY) & Nippon Paint (OTCMKTS:NPCPF)

Nippon Paint (OTCMKTS:NPCPF) and Randstad (OTCMKTS:RANJY) are both mid-cap construction companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Valuation & Earnings

This table compares Nippon Paint and Randstad”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nippon Paint	$10.84 billion	0.91	$841.18 million	$0.36	11.69
Randstad	$26.11 billion	0.31	$133.11 million	$0.35	63.37

Nippon Paint has higher earnings, but lower revenue than Randstad. Nippon Paint is trading at a lower price-to-earnings ratio than Randstad, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.0% of Randstad shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Nippon Paint pays an annual dividend of $4.40 per share and has a dividend yield of 104.5%. Randstad pays an annual dividend of $0.66 per share and has a dividend yield of 3.0%. Nippon Paint pays out 1,222.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Randstad pays out 188.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current recommendations for Nippon Paint and Randstad, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nippon Paint	0	1	0	0	2.00
Randstad	0	1	0	2	3.33

Profitability

This table compares Nippon Paint and Randstad’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Paint	7.77%	8.43%	4.30%
Randstad	0.53%	9.79%	3.71%

Risk & Volatility

Nippon Paint has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Randstad has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Summary

Randstad beats Nippon Paint on 8 of the 14 factors compared between the two stocks.

About Nippon Paint

Nippon Paint Holdings Co., Ltd. engages in the paints and fine chemicals businesses. The company offers automotive coatings, including paints for the automotive body, including surface treatment, electrodeposition coating, intermediate coating, and finish coating; paints for plastic components, such as bumpers and interior components; trade-use paints for construction sites, including single-family detached homes, buildings, and bridges; and industrial coatings that are used in a range of products, including construction and farming machinery, exterior construction materials, office equipment, and electric home appliances. It also provides marine coatings, such as antifouling paints; treatment agents for steel and aluminum products; and paints for DIY applications comprising wallpaper, wall cloth, and wooden, steel, and concrete materials. In addition, the company offers surface treatment products comprising functional coatings, which demonstrate various functions, such as hydrophilicity and rust prevention, and substrate films; caulking agents to fill gaps between building materials; adhesives to fix flooring and building materials; and fillers used for base coatings. Further, it is involved in the investment business; manufactures and sells surface treatment agents; and sales of paints and raw materials. The company has operations in Japan, Asia, the Americas, Oceania, and internationally. The company was formerly known as Nippon Paint Co., Ltd. and changed its name to Nippon Paint Holdings Co., Ltd. in October 2014. Nippon Paint Holdings Co., Ltd. was founded in 1879 and is headquartered in Tokyo, Japan.

About Randstad

Randstad N.V. provides solutions in the field of work and human resources (HR) services. The company provides temporary staffing and permanent placement services; job posting; and résumé services on digital platforms. It offers inhouse, enterprise and digital, and tech suite services. In addition, the company provides managed services programs, recruitment process outsourcing, outplacement and career development, and online talent acquisition. It has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally. The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018. Randstad N.V. was founded in 1960 and is headquartered in Diemen, the Netherlands.