Contrasting Recruit (OTCMKTS:RCRUY) & SS&C Technologies (NASDAQ:SSNC)

SS&C Technologies (NASDAQ:SSNC) and Recruit (OTCMKTS:RCRUY) are both large-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for SS&C Technologies and Recruit, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SS&C Technologies	1	2	8	1	2.75
Recruit	0	1	0	1	3.00

SS&C Technologies currently has a consensus price target of $96.57, indicating a potential upside of 21.67%. Given SS&C Technologies’ higher probable upside, equities research analysts plainly believe SS&C Technologies is more favorable than Recruit.

Volatility and Risk

SS&C Technologies has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Recruit has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.

Dividends

SS&C Technologies pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. Recruit pays an annual dividend of $0.02 per share and has a dividend yield of 0.1%. SS&C Technologies pays out 34.5% of its earnings in the form of a dividend. Recruit pays out 3.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SS&C Technologies has increased its dividend for 9 consecutive years. SS&C Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares SS&C Technologies and Recruit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SS&C Technologies	12.76%	21.80%	7.26%
Recruit	16.30%	39.26%	23.15%

Insider and Institutional Ownership

96.9% of SS&C Technologies shares are owned by institutional investors. 16.0% of SS&C Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares SS&C Technologies and Recruit”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SS&C Technologies	$6.69 billion	2.79	$796.90 million	$3.48	22.81
Recruit	$24.56 billion	6.34	$3.28 billion	$0.52	40.68

Recruit has higher revenue and earnings than SS&C Technologies. SS&C Technologies is trading at a lower price-to-earnings ratio than Recruit, indicating that it is currently the more affordable of the two stocks.

Summary

Recruit beats SS&C Technologies on 10 of the 17 factors compared between the two stocks.

About SS&C Technologies

SS&C Technologies Holdings, Inc. provides software and technology-enabled services to financial services and healthcare organizations. Its offerings include software for investment and wealth management, alternative investments, insurance, retirement and healthcare operations, as well as related business process outsourcing and fund administration services. The company was founded in 1986 by William C. Stone and is headquartered in Windsor, Connecticut. Stone serves as chairman and chief executive officer.

About Recruit

Recruit Holdings Co., Ltd. is a Japan-based technology and services company that connects people with jobs and helps businesses find workers and customers. Its operations include online recruitment platforms, staffing services and digital platforms that match consumers with businesses. The company operates Indeed and Glassdoor, which provide job search, recruitment and workplace information services. In Japan, its platforms serve areas such as housing, travel, beauty, dining and automotive services, while its staffing business provides recruitment and temporary staffing services.