Contrasting CACI International (NYSE:CACI) & Adecco (OTCMKTS:AHEXY)

Adecco (OTCMKTS:AHEXY) and CACI International (NYSE:CACI) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Volatility and Risk

Adecco has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, CACI International has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Institutional & Insider Ownership

86.4% of CACI International shares are held by institutional investors. 0.9% of CACI International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Adecco and CACI International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adecco	$26.11 billion	0.19	$333.76 million	$1.01	14.19
CACI International	$9.57 billion	1.42	$535.81 million	$24.15	25.48

CACI International has lower revenue, but higher earnings than Adecco. Adecco is trading at a lower price-to-earnings ratio than CACI International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Adecco and CACI International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adecco	2	3	1	1	2.14
CACI International	0	3	9	0	2.75

CACI International has a consensus target price of $697.55, suggesting a potential upside of 13.34%. Given CACI International’s stronger consensus rating and higher probable upside, analysts clearly believe CACI International is more favorable than Adecco.

Profitability

This table compares Adecco and CACI International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adecco	1.25%	12.67%	3.62%
CACI International	5.60%	15.65%	6.45%

Summary

CACI International beats Adecco on 12 of the 15 factors compared between the two stocks.

About Adecco

Adecco Group AG, together with its subsidiaries, provides human resource services to businesses and organizations in Europe, North America, Asia Pacific, South America, and North Africa. It offers flexible placement, permanent placement, outsourcing, training, upskilling and reskilling, career transition and workforce transformation, consulting, talent academy, digital staffing solutions under the Adecco, Akkodis, General Assembly, Badenoch + Clark, Lee Hecht Harrison, pontoon, Spring Professional, Adia, Modis, and YOSS brand names. The company also operates Hired, a talent recruitment platform. The company was formerly known as Adecco S.A. Adecco Group AG was founded in 1957 and is based in Zurich, Switzerland.

About CACI International

CACI International Inc, through its subsidiaries, engages in the provision of expertise and technology to enterprise and mission customers in support of national security in the intelligence, defense, and federal civilian sectors. The company operates through two segments, Domestic Operations and International Operations. The Domestic Operations segment offers digital solutions by modernizing enterprise and agency-unique applications, enterprise infrastructure, and business processes; C4ISR solutions, including command, control, communications, and computer (C4), as well as intelligence, surveillance, and reconnaissance (ISR) technology and networks; and cyber solutions for cybersecurity, cyberspace, electronic warfare, and signals intelligence operations. This segment also provides space solutions, comprising intelligence fusion, data analytic, and decision support, as well as logistics solutions; engineering services, such as platform integration, modernization and sustainment, system engineering, naval architecture, training and simulation, and logistics engineering; design, implement, protect, and manage secure enterprise IT solutions for federal agencies; and mission support solutions, that include analytic services, as well as scenario-based instruction across the spectrum of intelligence processing, collection, and products. The International Operations segment provides a range of IT services, proprietary data, and software products to the commercial and government customers in the United Kingdom, continental Europe, and internationally. The company was founded in 1962 and is headquartered in Reston, Virginia.