Kelly Services, Inc. (KELYA) vs TriNet Group, Inc. (TNET)

Kelly Services, Inc. and TriNet Group, Inc. are both Staffing & Employment Services companies. TriNet Group, Inc. is the larger, with a market value of $2.9B against $610.2M — 4.8× the size. Kelly Services, Inc. has negative trailing earnings, so its P/E is not meaningful; TriNet Group, Inc. trades at 18.1×. TriNet Group, Inc. grew revenue faster over the last twelve months: −3.96% against −9.63%. TriNet Group, Inc. has the higher net margin (3.60% vs −6.73%) and the higher return on invested capital (0.00% vs −5.54%). Both pay a dividend; Kelly Services, Inc. yields more (1.78% vs 1.70%). Across the 22 metrics below, TriNet Group, Inc. leads on 14 and Kelly Services, Inc. on 8.

Valuation

Metric KELYA TNET Staffing & Employment Services median
P/E n/m 18.05 24.18
P/S 0.14 0.65 0.29
P/B 0.60 23.25 1.11
Price to free cash flow 27.20 10.81 22.95
EV/EBITDA 10.39 6.93 12.06
EV/Sales 0.16 0.53 0.34
Earnings yield (46.35%) 5.54% 0.14%
Free cash flow yield 3.68% 9.25% 2.12%

Profitability

Metric KELYA TNET Staffing & Employment Services median
Gross margin 19.67% 18.37% 25.01%
Operating margin (2.26%) 4.96% 0.20%
Net margin (6.73%) 3.60% 0.04%
Free cash flow margin 0.53% 5.99% 0.58%
Return on equity (24.32%) 141.56% 3.45%
Return on assets (11.41%) 5.05% 0.07%
Return on invested capital (5.54%) 0.00% 0.00%

Growth

Metric KELYA TNET Staffing & Employment Services median
Revenue growth (TTM) (9.63%) (3.96%) (3.96%)
EPS growth (last fiscal year) (36,100.00%) (6.71%) (21.61%)
Revenue growth, 5-year CAGR (1.20%) 4.15% 1.03%
Net income growth, 5-year CAGR 0.00% (10.64%) 0.00%

Health

Metric KELYA TNET Staffing & Employment Services median
Debt to equity 0.08 6.74 0.04
Current ratio 1.50 1.14 1.72
Net debt to EBITDA 0.81 (3.31) (0.08)

Dividend

Metric KELYA TNET Staffing & Employment Services median
Dividend yield 1.78% 1.70% 2.26%
Payout ratio — 0.31 0.50

Size

Metric KELYA TNET Staffing & Employment Services median
Market cap 610.19m 2.94b 453.82m

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