TrueBlue (TBI) & On Assignment (ASGN) Critical Review

TrueBlue (NYSE: TBI) and On Assignment (NYSE:ASGN) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for TrueBlue and On Assignment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TrueBlue 0 3 0 0 2.00
On Assignment 0 0 2 0 3.00

TrueBlue currently has a consensus price target of $18.67, indicating a potential downside of 12.98%. On Assignment has a consensus price target of $56.00, indicating a potential upside of 13.89%. Given On Assignment’s stronger consensus rating and higher probable upside, analysts plainly believe On Assignment is more favorable than TrueBlue.

Profitability

This table compares TrueBlue and On Assignment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TrueBlue 2.27% 15.18% 7.29%
On Assignment 4.32% 16.71% 8.42%

Earnings & Valuation

This table compares TrueBlue and On Assignment’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TrueBlue $2.61 billion 0.34 $138.93 million $1.41 15.21
On Assignment $2.53 billion 1.03 $263.01 million $2.04 24.10

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

Institutional and Insider Ownership

90.1% of TrueBlue shares are held by institutional investors. Comparatively, 90.1% of On Assignment shares are held by institutional investors. 2.0% of TrueBlue shares are held by company insiders. Comparatively, 5.4% of On Assignment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

TrueBlue has a beta of 2.38, suggesting that its share price is 138% more volatile than the S&P 500. Comparatively, On Assignment has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500.

Summary

On Assignment beats TrueBlue on 12 of the 14 factors compared between the two stocks.

About TrueBlue

TrueBlue, Inc. is a provider of specialized workforce solutions. The Company is engaged in providing staffing, on-site workforce management and recruitment process outsourcing services. The Company operates through three segments: PeopleReady, PeopleManagement and PeopleScout. Its PeopleReady segment provides blue-collar contingent staffing through the PeopleReady service line. Its PeopleManagement segment provides primarily on-premise contingent staffing and on-premise management of those contingent staffing services through four segments: Staff Management a SMX (Staff Management), SIMOS Insourcing Solutions Corporation (SIMOS), Centerline and PlaneTechs. Its PeopleScout segment provides permanent employee recruitment process outsourcing (RPO) and management of outsourced labor service providers through two segments: PeopleScout and PeopleScout MSP.

About On Assignment

On Assignment, Inc. is a global provider of in-demand, skilled professionals in the technology, life sciences and creative sectors. The Company matches resumes with job descriptions to match people they know into positions they understand for temporary, contract-to-hire, and direct hire assignments. It operates through two segments. The Apex segment provides technical, scientific and creative professionals for temporary, contract-to-hire and permanent placement positions and consulting services to clients across the United States. The Apex segment includes Apex Systems, Lab Support and Creative Circle. The Oxford segment provides specialized niche staffing, permanent placement and consulting services in select skill and geographic markets. The Oxford segment includes Oxford Global Resources, CyberCoders and Life Sciences Europe. The Company has a network of branch offices throughout the United States, Canada and Europe.

Receive News & Ratings for TrueBlue Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TrueBlue Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply