MAN vs. RHI: Which Stock Should Value Investors Buy Now?

MAN RHI

Investors with an interest in Staffing Firms stocks have likely encountered both ManpowerGroup (MAN - Free Report) and Robert Half (RHI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both ManpowerGroup and Robert Half are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.

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 16.17, while RHI has a forward P/E of 22.31. We also note that MAN has a PEG ratio of 0.70. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RHI currently has a PEG ratio of 1.44.

Another notable valuation metric for MAN is its P/B ratio of 2.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RHI has a P/B of 8.32.

These metrics, and several others, help MAN earn a Value grade of A, while RHI has been given a 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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