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

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 $765.8M against $659.7M — 1.2× the size. Kelly Services, Inc. has negative trailing earnings, so its P/E is not meaningful; Barrett Business Services, Inc. trades at 22.4×. Barrett Business Services, Inc. grew revenue faster over the last twelve months: 5.59% against −9.63%. Barrett Business Services, Inc. has the higher net margin (2.77% vs −6.73%) and the higher return on invested capital (24.0% vs −5.54%). Both pay a dividend; Kelly Services, Inc. yields more (1.63% vs 1.07%). Across the 22 metrics below, Barrett Business Services, Inc. leads on 15 and Kelly Services, Inc. on 7.

Valuation

Metric BBSI KELYB Staffing & Employment Services median
P/E 22.40 n/m 24.32
P/S 0.60 0.19 0.41
P/B 3.72 0.78 1.28
Price to free cash flow 48.84 35.81 18.57
EV/EBITDA 12.87 13.40 10.55
EV/Sales 0.62 0.20 0.40
Earnings yield 4.46% (35.20%) 0.99%
Free cash flow yield 2.05% 2.79% 2.79%

Profitability

Metric BBSI KELYB Staffing & Employment Services median
Gross margin 19.98% 19.67% 23.11%
Operating margin 4.13% (2.26%) 0.08%
Net margin 2.77% (6.73%) 0.23%
Free cash flow margin 1.23% 0.53% 1.23%
Return on equity 16.33% (24.32%) 2.31%
Return on assets 4.92% (11.41%) 0.00%
Return on invested capital 24.03% (5.54%) 0.00%

Growth

Metric BBSI KELYB Staffing & Employment Services median
Revenue growth (TTM) 5.59% (9.63%) 0.69%
EPS growth (last fiscal year) 5.05% (36,100.00%) —
Revenue growth, 5-year CAGR 7.08% (1.20%) 1.23%
Net income growth, 5-year CAGR 10.03% 0.00% 0.00%

Health

Metric BBSI KELYB Staffing & Employment Services median
Debt to equity 0.00 0.08 0.08
Current ratio 1.14 1.50 1.50
Net debt to EBITDA (2.23) 0.81 (0.22)

Dividend

Metric BBSI KELYB Staffing & Employment Services median
Dividend yield 1.07% 1.63% 2.16%
Payout ratio 0.18 7.50 0.30

Size

Metric BBSI KELYB Staffing & Employment Services median
Market cap 765.83m 659.70m 590.17m

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