HireQuest, Inc. (HQI) vs Kforce, Inc. (KFRC)

HireQuest, Inc. and Kforce, Inc. are both Staffing & Employment Services companies. Kforce, Inc. is the larger, with a market value of $919.6M against $260.6M — 3.5× the size. Kforce, Inc. trades at the lower P/E: 24.3× against 34.0×. Kforce, Inc. grew revenue faster over the last twelve months: −1.26% against −7.53%. HireQuest, Inc. has the higher net margin (27.1% vs 2.71%) and the lower return on invested capital (7.97% vs 14.7%). Both pay a dividend; Kforce, Inc. yields more (2.23% vs 1.87%). Across the 23 metrics below, HireQuest, Inc. leads on 13 and Kforce, Inc. on 10.

Valuation

Metric HQI KFRC Staffing & Employment Services median
P/E 33.97 24.32 24.32
P/S 9.16 0.64 0.41
P/B 4.01 6.99 1.28
Price to free cash flow 30.69 38.31 18.57
EV/EBITDA 23.50 16.36 10.55
EV/Sales 9.61 0.73 0.40
Earnings yield 2.94% 4.11% 0.99%
Free cash flow yield 3.26% 2.61% 2.79%

Profitability

Metric HQI KFRC Staffing & Employment Services median
Gross margin 100.00% 27.67% 23.11%
Operating margin 28.44% 4.04% 0.08%
Net margin 27.06% 2.71% 0.23%
Free cash flow margin 31.32% 1.68% 1.23%
Return on equity 12.10% 28.27% 2.31%
Return on assets 8.69% 9.31% 0.00%
Return on invested capital 7.97% 14.73% 0.00%

Growth

Metric HQI KFRC Staffing & Employment Services median
Revenue growth (TTM) (7.53%) (1.26%) 0.69%
EPS growth (last fiscal year) 73.08% (26.87%) —
Revenue growth, 5-year CAGR 17.28% (1.00%) 1.23%
Net income growth, 5-year CAGR 3.38% (9.08%) 0.00%

Health

Metric HQI KFRC Staffing & Employment Services median
Debt to equity 0.00 0.87 0.08
Current ratio 2.74 1.93 1.50
Net debt to EBITDA (0.39) 1.16 (0.22)

Dividend

Metric HQI KFRC Staffing & Employment Services median
Dividend yield 1.87% 2.23% 2.16%
Payout ratio 0.30 0.41 0.30

Size

Metric HQI KFRC Staffing & Employment Services median
Market cap 260.62m 919.63m 590.17m

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