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 $997.7M against $659.7M — 1.5× the size. Kelly Services, Inc. has negative trailing earnings, so its P/E is not meaningful; Kforce, Inc. trades at 23.3×. Kforce, Inc. grew revenue faster over the last twelve months: 2.14% against −7.68%. Kforce, Inc. has the higher net margin (2.98% vs 0.00%) and the higher return on invested capital (15.9% vs 0.63%). Across the 20 metrics below, Kforce, Inc. leads on 13 and Kelly Services, Inc. on 7.

Valuation

Metric KELYB KFRC Staffing & Employment Services median
P/E n/m 23.27 23.57
P/S 0.22 0.68 0.28
P/B 0.90 6.85 1.24
Price to free cash flow n/m 107.98 17.58
EV/EBITDA 16.05 17.04 11.38
EV/Sales 0.24 0.83 0.34
Earnings yield (14.09%) 4.30% 0.15%
Free cash flow yield (0.87%) 0.93% 0.39%

Profitability

Metric KELYB KFRC Staffing & Employment Services median
Gross margin 19.72% 27.79% 25.01%
Operating margin 0.27% 4.51% 0.29%
Net margin 0.00% 2.98% 0.04%
Free cash flow margin (0.05%) 0.63% 0.14%
Return on equity 0.00% 30.46% 2.93%
Return on assets 0.00% 10.16% 0.07%
Return on invested capital 0.63% 15.85% 0.32%

Growth

Metric KELYB KFRC Staffing & Employment Services median
Revenue growth (TTM) (7.68%) 2.14% (2.94%)
EPS growth (last fiscal year) (36,100.00%) (26.87%) (21.61%)
Revenue growth, 5-year CAGR (1.20%) (1.00%) 1.03%
Net income growth, 5-year CAGR 0.00% (9.08%) 0.00%

Health

Metric KELYB KFRC Staffing & Employment Services median
Debt to equity 0.13 0.79 0.04
Current ratio 1.55 1.95 1.75
Net debt to EBITDA 0.81 1.16 (0.08)

Dividend

Metric KELYB KFRC Staffing & Employment Services median
Dividend yield — 2.86% 2.47%
Payout ratio — 0.67 0.50

Size

Metric KELYB KFRC Staffing & Employment Services median
Market cap 659.70m 997.66m 461.40m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack