These Recruiters are Delivering for Investors: LinkedIn Corp (LNKD), On Assignment, Inc. (ASGN)

In FY2012, On Assignment, Inc. (NYSE:ASGN) produced very strong growth, with increases in revenues and adjusted operating income of 107.6% and 125.05%, respectively, compared to the prior year. The company benefited from its purchase of Apex, as well as from 30% organic growth in its legacy business. In addition, On Assignment achieved operating margin improvement as it added almost 700,000 contract professionals to its national operating network. Looking forward, the company is expecting further growth in 2013 and beyond as its core technology, health care, and life sciences customers continue to grow and add temporary workers.

Founded in 2003, LinkedIn Corp (NYSE:LNKD) is the world’s largest professional online network, with over 200 million members in 200 countries. The company is the ultimate recruiting environment, allowing its users to create profiles, share knowledge, and find job or business opportunities. Much like social network Facebook, LinkedIn provides free basic services in order to create a critical mass of users that will enhance the company’s overall value.

In FY2012, LinkedIn Corp (NYSE:LNKD) enjoyed another year of torrid growth, with increases in revenues and adjusted operating income of 86.2% and 125.9%, respectively, versus the prior year. The company benefited from a 50% rise in its monthly unique users, as well as the introduction of local websites in various international markets. In addition, LinkedIn’s profitability reached the highest level of the past five years, as the company reported a 78% membership increase in its high-margin corporate solutions segment.

Looking ahead, LinkedIn Corp (NYSE:LNKD) is hoping to expand beyond the recruitment market by providing an online channel for salespeople’s marketing efforts. The company recently purchased SlideShare, one of the world’s largest providers of technology to upload and share presentations among a user base. Combined with the company’s sales navigation product, LinkedIn Corp (NYSE:LNKD) is providing access to future sales opportunities, further enhancing the company’s value to its user base.

The recruitment industry is poised for another year of growth as a prime beneficiary of the federal government’s stimulus activities. These three companies have each put themselves in a good operating position through strong relationships with their customer base. While all three are currently priced at premium valuations, investors need to put these winners on their watchlist.

The article These Recruiters are Delivering for Investors originally appeared on Fool.com and is written by Robert Hanley.

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