First Advantage vs HireRight

First Advantage and HireRight are two companies in the human resources industry that provide screening and background check services to businesses. Both companies have experienced growth in recent years as the demand for pre-employment screening services has increased. First Advantage has a larger market share and a longer track record of success, while HireRight is known for its innovative technology solutions. Investors can analyze the financial performance and growth potential of both companies to make informed decisions about investing in their stocks.

First Advantage or HireRight?

When comparing First Advantage and HireRight, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between First Advantage and HireRight.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. First Advantage has a dividend yield of -%, while HireRight has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. First Advantage reports a 5-year dividend growth of 0.00% year and a payout ratio of 888.15%. On the other hand, HireRight reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with First Advantage P/E ratio at 119.01 and HireRight's P/E ratio at -134.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. First Advantage P/B ratio is 3.20 while HireRight's P/B ratio is 2.15.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, First Advantage has seen a 5-year revenue growth of 0.68%, while HireRight's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with First Advantage's ROE at 2.71% and HireRight's ROE at -1.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $19.91 for First Advantage and $14.35 for HireRight. Over the past year, First Advantage's prices ranged from $12.46 to $20.75, with a yearly change of 66.53%. HireRight's prices fluctuated between $8.69 and $14.39, with a yearly change of 65.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.