Analyzing TaskUs (NASDAQ:TASK) & Recruit (OTCMKTS:RCRUY)

Recruit (OTCMKTS:RCRUY) and TaskUs (NASDAQ:TASK) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Valuation & Earnings

This table compares Recruit and TaskUs”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recruit	$24.56 billion	6.18	$3.28 billion	$0.52	39.63
TaskUs	$1.18 billion	0.58	$102.28 million	$1.16	6.47

Recruit has higher revenue and earnings than TaskUs. TaskUs is trading at a lower price-to-earnings ratio than Recruit, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Recruit and TaskUs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recruit	0	1	0	0	2.00
TaskUs	2	4	1	1	2.12

TaskUs has a consensus price target of $9.60, indicating a potential upside of 28.00%. Given TaskUs’ stronger consensus rating and higher probable upside, analysts clearly believe TaskUs is more favorable than Recruit.

Volatility & Risk

Recruit has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, TaskUs has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.

Profitability

This table compares Recruit and TaskUs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recruit	14.94%	36.40%	21.05%
TaskUs	8.75%	27.02%	11.58%

Institutional and Insider Ownership

44.6% of TaskUs shares are owned by institutional investors. 31.9% of TaskUs shares are owned by 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.

Summary

TaskUs beats Recruit on 8 of the 15 factors compared between the two stocks.

About Recruit

Recruit Holdings Co., Ltd. provides HR technology and business solutions that transforms the world of work. It operates through three segments: HR Technology, Matching & Solutions, and Staffing. The HR Technology segment provides various technological solutions that help job seekers and employers in navigating hiring and recruitment. The Matching & Solutions segment offers HR solutions that support business clients’ recruiting and hiring activities and individual users’ job search activities through its job advertising services and placement services. This segment also provides marketing solutions that provide matching platforms for businesses in various industries, including housing and real estate, beauty, bridal, travel, dining, and others, as well as SaaS solutions, which are business and management support tools for small and medium-sized companies. The Staffing segment provides temporary staffing services in Japan, Europe, the United States, and Australia. Recruit Holdings Co., Ltd. operates in more than 60 countries. The company was formerly known as Recruit Co., Ltd. and changed its name to Recruit Holdings Co., Ltd. in October 2012. Recruit Holdings Co., Ltd. was founded in 1960 and is headquartered in Tokyo, Japan.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.