Contrasting TrueBlue (TBI) & On Assignment (ASGN)

On Assignment (NYSE: ASGN) and TrueBlue (NYSE:TBI) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Volatility and Risk

On Assignment has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500. Comparatively, TrueBlue has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500.

Profitability

This table compares On Assignment and TrueBlue’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
On Assignment 4.32% 16.71% 8.42%
TrueBlue 2.27% 15.18% 7.29%

Valuation and Earnings

This table compares On Assignment and TrueBlue’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
On Assignment $2.53 billion 1.05 $263.01 million $2.04 24.77
TrueBlue $2.61 billion 0.34 $138.93 million $1.41 15.14

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for On Assignment and TrueBlue, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
On Assignment 0 0 2 0 3.00
TrueBlue 0 3 0 0 2.00

On Assignment currently has a consensus price target of $56.00, suggesting a potential upside of 10.83%. TrueBlue has a consensus price target of $18.67, suggesting a potential downside of 12.57%. Given On Assignment’s stronger consensus rating and higher possible upside, research analysts plainly believe On Assignment is more favorable than TrueBlue.

Insider & Institutional Ownership

90.0% of On Assignment shares are owned by institutional investors. Comparatively, 89.8% of TrueBlue shares are owned by institutional investors. 5.4% of On Assignment shares are owned by company insiders. Comparatively, 2.0% of TrueBlue shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

On Assignment beats TrueBlue on 12 of the 14 factors compared between the two stocks.

On Assignment Company Profile

On Assignment, Inc. is a global provider of in-demand, skilled professionals in the technology, life sciences and creative sectors. The Company matches resumes with job descriptions to match people they know into positions they understand for temporary, contract-to-hire, and direct hire assignments. It operates through two segments. The Apex segment provides technical, scientific and creative professionals for temporary, contract-to-hire and permanent placement positions and consulting services to clients across the United States. The Apex segment includes Apex Systems, Lab Support and Creative Circle. The Oxford segment provides specialized niche staffing, permanent placement and consulting services in select skill and geographic markets. The Oxford segment includes Oxford Global Resources, CyberCoders and Life Sciences Europe. The Company has a network of branch offices throughout the United States, Canada and Europe.

TrueBlue Company Profile

TrueBlue, Inc. is a provider of specialized workforce solutions. The Company is engaged in providing staffing, on-site workforce management and recruitment process outsourcing services. The Company operates through three segments: PeopleReady, PeopleManagement and PeopleScout. Its PeopleReady segment provides blue-collar contingent staffing through the PeopleReady service line. Its PeopleManagement segment provides primarily on-premise contingent staffing and on-premise management of those contingent staffing services through four segments: Staff Management a SMX (Staff Management), SIMOS Insourcing Solutions Corporation (SIMOS), Centerline and PlaneTechs. Its PeopleScout segment provides permanent employee recruitment process outsourcing (RPO) and management of outsourced labor service providers through two segments: PeopleScout and PeopleScout MSP.

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