Kelly Services, Inc. (KELYA) vs Mastech Digital, Inc (MHH)

Kelly Services, Inc. and Mastech Digital, Inc are both Staffing & Employment Services companies. Kelly Services, Inc. is the larger, with a market value of $590.2M against $86.7M — 6.8× the size. Kelly Services, Inc. has negative trailing earnings, so its P/E is not meaningful; Mastech Digital, Inc trades at 43.2×. Kelly Services, Inc. grew revenue faster over the last twelve months: −9.63% against −11.8%. Mastech Digital, Inc has the higher net margin (1.18% vs −6.73%) and the higher return on invested capital (1.73% vs −5.54%). Across the 21 metrics below, Mastech Digital, Inc leads on 15 and Kelly Services, Inc. on 6.

Valuation

Metric KELYA MHH Staffing & Employment Services median
P/E n/m 43.24 24.32
P/S 0.14 0.50 0.41
P/B 0.58 0.96 1.28
Price to free cash flow 26.60 9.30 18.57
EV/EBITDA 10.18 10.55 10.55
EV/Sales 0.15 0.32 0.40
Earnings yield (47.39%) 2.31% 0.99%
Free cash flow yield 3.76% 10.75% 2.79%

Profitability

Metric KELYA MHH Staffing & Employment Services median
Gross margin 19.67% 27.97% 23.11%
Operating margin (2.26%) 0.88% 0.08%
Net margin (6.73%) 1.18% 0.23%
Free cash flow margin 0.53% 5.38% 1.23%
Return on equity (24.32%) 2.31% 2.31%
Return on assets (11.41%) 1.89% 0.00%
Return on invested capital (5.54%) 1.73% 0.00%

Growth

Metric KELYA MHH Staffing & Employment Services median
Revenue growth (TTM) (9.63%) (11.76%) 0.69%
EPS growth (last fiscal year) (36,100.00%) (82.14%) —
Revenue growth, 5-year CAGR (1.20%) (0.28%) 1.23%
Net income growth, 5-year CAGR 0.00% (42.70%) 0.00%

Health

Metric KELYA MHH Staffing & Employment Services median
Debt to equity 0.08 0.00 0.08
Current ratio 1.50 4.10 1.50
Net debt to EBITDA 0.81 (9.32) (0.22)

Dividend

Metric KELYA MHH Staffing & Employment Services median
Dividend yield 1.41% — 2.16%
Payout ratio 7.50 0.00 0.30

Size

Metric KELYA MHH Staffing & Employment Services median
Market cap 590.17m 86.67m 590.17m

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