Among the various online job portals, DICE HOLDINGS, INC. (NYSE:DHX) might be one of the biggest underdogs. With just above 500 employees to its name, Dice Holdings is competing against giants such as LinkedIn Corp (NYSE:LNKD) and Monster Worldwide, Inc. (NYSE:MWW). The company recently hit a 52-week high and looks set to climb higher. Here’s a take on why this company would be a class apart as compared to its competitors.
Dice holdings and its competition
Before we analyze how DICE HOLDINGS, INC. (NYSE:DHX) is performing, let’s have a look at how Monster and LinkedIn have been performing.
The profit margins of Monster Worldwide, Inc. (NYSE:MWW) have decreased 29% and its operating margin is at 8%. The company’s trailing P/E ratio is literally non-existent. The company has tried to add value to its service by introducing a new Facebook Inc (NASDAQ:FB)–oriented platform called “BeKnown,” but with just 100,000 users, the company has found it hard to keep up with “Glassdoor,” a similar platform that has attracted over a million users on Facebook Inc (NASDAQ:FB).
LinkedIn Corp (NYSE:LNKD) is the company that is in pole position as far as online talent solutions are concerned. There was an increase of 90% in total revenue in the fourth quarter of last year as compared to 2011. Despite a P/E ratio of 695, an operating margin of 5.8%, and a paltry profit margin of 2.2%, the company is still behind in terms of the overall health of its business.
DICE HOLDINGS, INC. (NYSE:DHX), at the moment, is impressing a lot of investors with last year’s performance. After its April earnings release, the company’s stock did dip, but as of now, it is climbing up and has strong reason for the same.
There was significant growth in the initial stages this year. As of Dec. 31, 2012, the company had a profit margin of 19.5%, operating margin was at 30%, and projected earnings ratio was at 17.32. This gave reason to investors to believe in the company.
In the first quarter this year, the company met profit expectations but failed to meet revenue expectations. This failed to impress shareholders which resulted in a steep decline in stock price. Adjusted earnings decreased 7.6% and the company also missed the average revenue estimate of $50 million. But, the company’s overall outlook looks bright.
How Dice is set to gain
Unlike other online job portals, DICE HOLDINGS, INC. (NYSE:DHX) is industry specific as opposed to the conventional all in one job portal. The company publishes independent websites catering to individual industries. This is what sets Dice apart from portals like LinkedIn and Monster Worldwide. The strategy is to basically split the whole industry into segments and cater to each segment specifically. Using this strategy, DICE HOLDINGS, INC. (NYSE:DHX) has managed to fetch significant revenue from the “technology” segment and the “energy and health care” segment looks very promising as well.