Summary: ON SALE
Score: 15/20
MOS: 50%
Share Price: $68
Sticker Price: $136
On Assignment is one of the largest IT staffing/contracting companies in the US. Some of the companies they’ve acquired through the years include Apex, CyberCoders, Oxford, and ECS.
Contracting is a bigger industry than most people realize. Contracting is very similar to full-employment except you’re paid an hourly wage as opposed to a salary. The hourly wage typically pays MORE than the salary. Although contractors can be paid more than employees, they typically are not offered healthcare benefits or a 401K.
Even though a contractor may be paid more than an employee, they actually COST LESS than an employee because the employer doesn’t have to pay for those benefits.
To give you some numbers…
54% of Google’s (GOOGL) workforce are contractors.
40% of Facebook’s (FB) workforce are contractors.
30% of GE’s (GE) workforce are contractors.
On Assignment just released it’s Q2 report and the revenues were only down 5% from Q1. This isn’t too bad in comparison to other staffing companies…
Robert Half (RHI) is down 26%.
Randstad (RANJY) is down 18%.
Adecco (AHEXY) is down 13%.
This shows that On Assignment is working with strong businesses that did not layoff nearly as many contractors this year. That’s great news!
With a score of 15/20, On Assignment has proven to have strong financials and can weather storms such as COVID-19.