LinkedIn Corp (LNKD), Monster Worldwide, Inc. (MWW): DICE HOLDINGS, INC. (DHX) Will Hit New Highs

Page 1 of 2

DICE HOLDINGS, INC. (NYSE:DHX), a niche online job-board operator, is an arch rival of Monster Worldwide, Inc. (NYSE:MWW). Although lesser known and far smaller, with just 534 employees as compared to Monster Worldwide, Inc. (NYSE:MWW)’s 5,000, DICE HOLDINGS, INC. (NYSE:DHX) is beginning to distance itself from its larger rival based on financial and operating disciplines. Here are three reasons Dice’s undervalued business is outperforming and why its share price should hit new 52-week highs over the remainder of fiscal 2013.

1. Maxing out operating and profit margins

DICE HOLDINGS, INC. (NYSE:DHX) is currently posting metrics that leave many of its publicly traded competitors in its wake. The company’s profit margin for the trailing twelve months (ttm) ended Dec. 31, 2012 was 19.50%. Its operating margin was 30.17% in the same period, with a trailing P/E of 17.32.

Monster Worldwide, Inc. (NYSE:MWW) Worldwide is significantly under-performing, with a declining profit margin of -29.06%, an operating margin of just 8.14%, and a non-existent trailing P/E ratio. Monster Worldwide, Inc. (NYSE:MWW) recently launched a Facebook application called “BeKnown” but with just 100,000 or so users, the portal has yet to find traction. Privately held Glass Door, in contrast, offers a similar application but has more than 1 million Facebook users.

Networking website LinkedIn Corp (NYSE:LNKD), founded by serial Internet entrepreneur Reid Hoffman, is beginning to muscle its way into the job-board and talent-solution arena. In the fourth quarter, LinkedIn Corp (NYSE:LNKD) reported that revenue in “talent solutions” products increased 90% versus the same period in 2011. Despite these gains, LinkedIn Corp (NYSE:LNKD) still trails DICE HOLDINGS, INC. (NYSE:DHX) in the overall health of its business, with with an astounding trailing P/E of 945.21, a paltry profit margin of 2.22% and operating margin of 5.85%.

2. Energy, health and technology segments are soaring

Dice, unlike Monster Worldwide, Inc. (NYSE:MWW) and LinkedIn Corp (NYSE:LNKD), publishes specialized websites for select industries rather than manage a single career website for all job seekers. This divide-and-conquer strategy continues to make sense, as Dice is experiencing solid gains in its technology segment while its energy and health care verticals also showing strength.

For the fourth quarter, DICE HOLDINGS, INC. (NYSE:DHX)’s “tech and clearance” segments increased 19% year-over-year (y-o-y) to $37.1 million, which represents 70% of Dice’s consolidated revenues. Last year, Dice acquired Slashdot Media (which includes sub-brands Slashdot, SourceForge and Freecode) and added the brand to its roster of technology job sites. This added $4.7 million to the segment’s quarterly revenues.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!