MAN vs. RHI: Which Stock Is the Better Value Option?

MAN RHI

Investors interested in Staffing Firms stocks are likely familiar with ManpowerGroup (MAN - Free Report) and Robert Half (RHI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both ManpowerGroup and Robert Half are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MAN currently has a forward P/E ratio of 19.63, while RHI has a forward P/E of 21.96. We also note that MAN has a PEG ratio of 0.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RHI currently has a PEG ratio of 1.41.

Another notable valuation metric for MAN is its P/B ratio of 2.84. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RHI has a P/B of 8.61.

These are just a few of the metrics contributing to MAN's Value grade of A and RHI's Value grade of C.

Both MAN and RHI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MAN is the superior value option right now.

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