Robert Half International Inc. (RHI), Monster Worldwide, Inc. (MWW): A Look at Staffing Services in a Recuperating Employment Market

Trading at 24 times its earnings and at about half the industry average valuation, Manpowergroup Inc (NYSE:MAN) holds a moated business model, one of the strongest brand names in the industry and a history of above average revenue growth. I’d recommend BUYING and holding on to this company’s stock, especially as it will pay out 1.68% of its current stock price in the form of dividends.

Robert Half International Inc. (NYSE:RHI), staffing half the world

Robert Half International Inc. (NYSE:RHI) is the world´s largest specialized staffing and risk consulting services provider, operating in North and South America, Europe, Asia and Australia. The rising demand for professionals both in the U.S. and overseas has been one of the company’s main growth drivers over the last few years. As the economy recuperates, this demand should only rise and Robert Half International Inc. (NYSE:RHI) is particularly well positioned to benefit from this trend.

Although the temporary staffing segment is currently the strongest in terms of revenues, its margins are quite low. The recouping economy should increase the number of permanent employees hired versus temps, providing further tailwinds for the company.

The acquisition of Protiviti, a consulting firm, last year is also expected to increasingly contribute to revenue over the years to come. Moreover, by creating temporary workforce demand for consulting projects, Protiviti and
Robert Half International Inc. (NYSE:RHI)´s temp segment could benefit from strong synergies.

Bottom line

As the employment market recuperates and new companies develop in emerging countries, staffing solutions and services will be increasingly required. It has become more convenient for companies to outsource these processes, providing plenty of upside potential for the above companies. Consider adding them to your long-term portfolio, as there is plenty of room for appreciation. You can then sit back and enjoy the dividends from Manpowergroup Inc (NYSE:MAN) and Robert Half International Inc. (NYSE:RHI).

The article A Look at Staffing Services in a Recuperating Employment Market originally appeared on Fool.com and is written by Damian Illia.

Damian Illia has no position in any stocks mentioned. The Motley Fool recommends Robert Half International. Damian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.