Analyzing Nippon Paint (OTCMKTS:NPCPF) and Randstad (OTCMKTS:RANJY)

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

Risk and Volatility

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

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 company will outperform the market over the long term.

Dividends

Randstad pays an annual dividend of $0.66 per share and has a dividend yield of 2.9%. Nippon Paint pays an annual dividend of $4.40 per share and has a dividend yield of 112.8%. 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. 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.

Profitability

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

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

Analyst Ratings

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Randstad	$26.11 billion	0.31	$133.11 million	$0.35	64.06
Nippon Paint	$10.84 billion	0.84	$841.18 million	$0.36	10.83

Nippon Paint has lower revenue, but higher earnings 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.

Summary

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

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.

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.