Contrasting Recruit (OTCMKTS:RCRUY) and Where Food Comes From (NASDAQ:WFCF)

Recruit (OTCMKTS:RCRUY) and Where Food Comes From (NASDAQ:WFCF) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Institutional and Insider Ownership

18.8% of Where Food Comes From shares are owned by institutional investors. 53.5% of Where Food Comes From 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.

Volatility and Risk

Recruit has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Where Food Comes From has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Recruit and Where Food Comes From, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recruit	0	1	0	0	2.00
Where Food Comes From	0	1	0	0	2.00

Profitability

This table compares Recruit and Where Food Comes From’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recruit	14.94%	36.40%	21.05%
Where Food Comes From	5.78%	15.39%	10.24%

Valuation & Earnings

This table compares Recruit and Where Food Comes From”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recruit	$24.56 billion	6.26	$3.28 billion	$0.52	40.13
Where Food Comes From	$24.89 million	2.78	$1.54 million	$0.28	49.59

Recruit has higher revenue and earnings than Where Food Comes From. Recruit is trading at a lower price-to-earnings ratio than Where Food Comes From, indicating that it is currently the more affordable of the two stocks.

Summary

Recruit beats Where Food Comes From on 8 of the 11 factors compared between the two stocks.

About Recruit

Recruit Holdings Co., Ltd. provides HR technology and business solutions that transforms the world of work. It operates through three segments: HR Technology, Matching & Solutions, and Staffing. The HR Technology segment provides various technological solutions that help job seekers and employers in navigating hiring and recruitment. The Matching & Solutions segment offers HR solutions that support business clients’ recruiting and hiring activities and individual users’ job search activities through its job advertising services and placement services. This segment also provides marketing solutions that provide matching platforms for businesses in various industries, including housing and real estate, beauty, bridal, travel, dining, and others, as well as SaaS solutions, which are business and management support tools for small and medium-sized companies. The Staffing segment provides temporary staffing services in Japan, Europe, the United States, and Australia. Recruit Holdings Co., Ltd. operates in more than 60 countries. The company was formerly known as Recruit Co., Ltd. and changed its name to Recruit Holdings Co., Ltd. in October 2012. Recruit Holdings Co., Ltd. was founded in 1960 and is headquartered in Tokyo, Japan.

About Where Food Comes From

Where Food Comes From, Inc., together with its subsidiaries, operates as a third-party food verification company in North America. The company operates through Verification and Certification, and Professional Services segments. It conducts on-site and desk audits to verify that claims being made about livestock, food, other specialty crops, and agricultural and aquaculture products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education. It also offers professional services and technology solutions; verification solutions; and consulting services, as well as sells hardware. The company serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is based in Castle Rock, Colorado.