Barrett Business Services, Inc. (BBSI) vs Kforce, Inc. (KFRC)

Barrett Business Services, Inc. and Kforce, Inc. are both Staffing & Employment Services companies. Kforce, Inc. is the larger, with a market value of $997.7M against $736.5M — 1.4× the size. Kforce, Inc. trades at the lower P/E: 23.3× against 23.6×. Barrett Business Services, Inc. grew revenue faster over the last twelve months: 4.70% against 2.14%. Kforce, Inc. has the higher net margin (2.98% vs 2.44%) and the higher return on invested capital (15.9% vs 14.7%). Both pay a dividend; Kforce, Inc. yields more (2.86% vs 1.06%). Across the 23 metrics below, Kforce, Inc. leads on 13 and Barrett Business Services, Inc. on 10.

Valuation

Metric BBSI KFRC Staffing & Employment Services median
P/E 23.57 23.27 23.57
P/S 0.57 0.68 0.28
P/B 3.50 6.85 1.24
Price to free cash flow 242.39 107.98 17.58
EV/EBITDA 13.04 17.04 11.38
EV/Sales 0.59 0.83 0.34
Earnings yield 4.24% 4.30% 0.15%
Free cash flow yield 0.41% 0.93% 0.39%

Profitability

Metric BBSI KFRC Staffing & Employment Services median
Gross margin 19.43% 27.79% 25.01%
Operating margin 3.80% 4.51% 0.29%
Net margin 2.44% 2.98% 0.04%
Free cash flow margin 0.23% 0.63% 0.14%
Return on equity 13.94% 30.46% 2.93%
Return on assets 4.09% 10.16% 0.07%
Return on invested capital 14.65% 15.85% 0.32%

Growth

Metric BBSI KFRC Staffing & Employment Services median
Revenue growth (TTM) 4.70% 2.14% (2.94%)
EPS growth (last fiscal year) 5.05% (26.87%) (21.61%)
Revenue growth, 5-year CAGR 7.08% (1.00%) 1.03%
Net income growth, 5-year CAGR 10.03% (9.08%) 0.00%

Health

Metric BBSI KFRC Staffing & Employment Services median
Debt to equity 0.00 0.79 0.04
Current ratio 1.18 1.95 1.75
Net debt to EBITDA (2.23) 1.16 (0.08)

Dividend

Metric BBSI KFRC Staffing & Employment Services median
Dividend yield 1.06% 2.86% 2.47%
Payout ratio 0.25 0.67 0.50

Size

Metric BBSI KFRC Staffing & Employment Services median
Market cap 736.50m 997.66m 461.40m

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