Kelly Services, Inc. (KELYB) vs Kforce, Inc. (KFRC)

Kelly Services, Inc. and Kforce, Inc. are both Staffing & Employment Services companies. Kforce, Inc. is the larger, with a market value of $919.6M against $659.7M — 1.4× the size. Kelly Services, Inc. has negative trailing earnings, so its P/E is not meaningful; Kforce, Inc. trades at 24.3×. Kforce, Inc. grew revenue faster over the last twelve months: −1.26% against −9.63%. Kforce, Inc. has the higher net margin (2.71% vs −6.73%) and the higher return on invested capital (14.7% vs −5.54%). Both pay a dividend; Kforce, Inc. yields more (2.23% vs 1.63%). Across the 22 metrics below, Kforce, Inc. leads on 13 and Kelly Services, Inc. on 9.

Valuation

Metric KELYB KFRC Staffing & Employment Services median
P/E n/m 24.32 24.32
P/S 0.19 0.64 0.41
P/B 0.78 6.99 1.28
Price to free cash flow 35.81 38.31 18.57
EV/EBITDA 13.40 16.36 10.55
EV/Sales 0.20 0.73 0.40
Earnings yield (35.20%) 4.11% 0.99%
Free cash flow yield 2.79% 2.61% 2.79%

Profitability

Metric KELYB KFRC Staffing & Employment Services median
Gross margin 19.67% 27.67% 23.11%
Operating margin (2.26%) 4.04% 0.08%
Net margin (6.73%) 2.71% 0.23%
Free cash flow margin 0.53% 1.68% 1.23%
Return on equity (24.32%) 28.27% 2.31%
Return on assets (11.41%) 9.31% 0.00%
Return on invested capital (5.54%) 14.73% 0.00%

Growth

Metric KELYB KFRC Staffing & Employment Services median
Revenue growth (TTM) (9.63%) (1.26%) 0.69%
EPS growth (last fiscal year) (36,100.00%) (26.87%) —
Revenue growth, 5-year CAGR (1.20%) (1.00%) 1.23%
Net income growth, 5-year CAGR 0.00% (9.08%) 0.00%

Health

Metric KELYB KFRC Staffing & Employment Services median
Debt to equity 0.08 0.87 0.08
Current ratio 1.50 1.93 1.50
Net debt to EBITDA 0.81 1.16 (0.22)

Dividend

Metric KELYB KFRC Staffing & Employment Services median
Dividend yield 1.63% 2.23% 2.16%
Payout ratio 7.50 0.41 0.30

Size

Metric KELYB KFRC Staffing & Employment Services median
Market cap 659.70m 919.63m 590.17m

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