Robert Half (NYSE:RHI) vs. Parsons (NYSE:PSN) Critical Review

Parsons (NYSE:PSN) and Robert Half (NYSE:RHI) are both mid-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for Parsons and Robert Half, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parsons	1	4	11	0	2.62
Robert Half	3	4	3	0	2.00

Parsons presently has a consensus price target of $63.00, suggesting a potential upside of 28.53%. Robert Half has a consensus price target of $38.50, suggesting a potential downside of 16.35%. Given Parsons’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Parsons is more favorable than Robert Half.

Valuation and Earnings

This table compares Parsons and Robert Half”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parsons	$6.36 billion	0.82	$241.14 million	$1.45	33.80
Robert Half	$5.38 billion	0.88	$132.99 million	$1.21	38.04

Parsons has higher revenue and earnings than Robert Half. Parsons is trading at a lower price-to-earnings ratio than Robert Half, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

98.0% of Parsons shares are owned by institutional investors. Comparatively, 92.4% of Robert Half shares are owned by institutional investors. 1.3% of Parsons shares are owned by company insiders. Comparatively, 3.5% of Robert Half shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Parsons has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Robert Half has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Profitability

This table compares Parsons and Robert Half’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parsons	2.50%	8.10%	3.75%
Robert Half	2.30%	9.83%	4.34%

Summary

Parsons beats Robert Half on 8 of the 14 factors compared between the two stocks.

About Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.

About Robert Half

Robert Half Inc. provides talent solutions and business consulting services in North America, South America, Europe, Asia, and Australia. The company operates through Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti segments. The Contract Talent Solutions segment provides contract engagement professionals in the fields of finance and accounting, technology, marketing and creative, legal and administrative, and customer support. This segment markets its services to clients and employment candidates through both national and local advertising activities, including radio, digital advertising, job boards, alliance partners, and events. The Permanent Placement Talent Solutions segment engages in the placement of full-time accounting, finance, and tax and accounting operations personnel. The Protiviti segment offers consulting services in the areas of internal audit, technology consulting, risk, and compliance consulting. It offers it services under the Robert Half brand name. The company was formerly known as Robert Half International Inc. and changed its name to Robert Half Inc. in July 2023. Robert Half Inc. was founded in 1948 and is headquartered in Menlo Park, California.