Barrett Business Services, Inc. (BBSI) vs Kelly Services, Inc. (KELYA)

Barrett Business Services, Inc. and Kelly Services, Inc. are both Staffing & Employment Services companies. Barrett Business Services, Inc. is the larger, with a market value of $736.5M against $515.3M — 1.4× the size. Kelly Services, Inc. has negative trailing earnings, so its P/E is not meaningful; Barrett Business Services, Inc. trades at 23.6×. Barrett Business Services, Inc. grew revenue faster over the last twelve months: 4.70% against −7.68%. Barrett Business Services, Inc. has the higher net margin (2.44% vs 0.00%) and the higher return on invested capital (14.7% vs 0.63%). Both pay a dividend; Kelly Services, Inc. yields more (2.16% vs 1.06%). Across the 21 metrics below, Barrett Business Services, Inc. leads on 14 and Kelly Services, Inc. on 7.

Valuation

Metric BBSI KELYA Staffing & Employment Services median
P/E 23.57 n/m 23.57
P/S 0.57 0.12 0.28
P/B 3.50 0.49 1.24
Price to free cash flow 242.39 n/m 17.58
EV/EBITDA 13.04 9.46 11.38
EV/Sales 0.59 0.14 0.34
Earnings yield 4.24% (25.96%) 0.15%
Free cash flow yield 0.41% (1.60%) 0.39%

Profitability

Metric BBSI KELYA Staffing & Employment Services median
Gross margin 19.43% 19.72% 25.01%
Operating margin 3.80% 0.27% 0.29%
Net margin 2.44% 0.00% 0.04%
Free cash flow margin 0.23% (0.05%) 0.14%
Return on equity 13.94% 0.00% 2.93%
Return on assets 4.09% 0.00% 0.07%
Return on invested capital 14.65% 0.63% 0.32%

Growth

Metric BBSI KELYA Staffing & Employment Services median
Revenue growth (TTM) 4.70% (7.68%) (2.94%)
EPS growth (last fiscal year) 5.05% (36,100.00%) (21.61%)
Revenue growth, 5-year CAGR 7.08% (1.20%) 1.03%
Net income growth, 5-year CAGR 10.03% 0.00% 0.00%

Health

Metric BBSI KELYA Staffing & Employment Services median
Debt to equity 0.00 0.13 0.04
Current ratio 1.18 1.55 1.75
Net debt to EBITDA (2.23) 0.81 (0.08)

Dividend

Metric BBSI KELYA Staffing & Employment Services median
Dividend yield 1.06% 2.16% 2.47%
Payout ratio 0.25 — 0.50

Size

Metric BBSI KELYA Staffing & Employment Services median
Market cap 736.50m 515.34m 461.40m

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