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 $926.3M against $783.8M — 1.2× the size. Barrett Business Services, Inc. trades at the lower P/E: 23.4× against 24.1×. Barrett Business Services, Inc. grew revenue faster over the last twelve months: 5.59% against −1.26%. Barrett Business Services, Inc. has the higher net margin (2.77% vs 2.71%) and the higher return on invested capital (24.0% vs 14.7%). Both pay a dividend; Kforce, Inc. yields more (3.12% vs 0.98%). Across the 23 metrics below, Barrett Business Services, Inc. leads on 15 and Kforce, Inc. on 8.

Valuation

Metric BBSI KFRC Staffing & Employment Services median
P/E 23.42 24.06 23.42
P/S 0.63 0.64 0.36
P/B 3.89 6.92 1.01
Price to free cash flow 51.05 37.90 16.25
EV/EBITDA 13.43 17.81 9.41
EV/Sales 0.65 0.79 0.40
Earnings yield 4.27% 4.16% 1.15%
Free cash flow yield 1.96% 2.64% 2.73%

Profitability

Metric BBSI KFRC Staffing & Employment Services median
Gross margin 19.98% 27.67% 23.11%
Operating margin 4.13% 4.04% 0.08%
Net margin 2.77% 2.71% 0.27%
Free cash flow margin 1.23% 1.68% 1.23%
Return on equity 16.33% 28.27% 2.31%
Return on assets 4.92% 9.31% 0.00%
Return on invested capital 24.03% 14.73% 0.00%

Growth

Metric BBSI KFRC Staffing & Employment Services median
Revenue growth (TTM) 5.59% (1.26%) 0.69%
EPS growth (last fiscal year) 5.05% (26.87%) (27.86%)
Revenue growth, 5-year CAGR 7.08% (1.00%) 2.59%
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 0.87 0.08
Current ratio 1.14 1.93 1.50
Net debt to EBITDA (2.23) 1.16 (0.22)

Dividend

Metric BBSI KFRC Staffing & Employment Services median
Dividend yield 0.98% 3.12% 2.46%
Payout ratio 0.24 0.75 0.42

Size

Metric BBSI KFRC Staffing & Employment Services median
Market cap 783.76m 926.25m 558.08m

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