Kelly Services, Inc. (KELYB) vs Korn/Ferry International (KFY)

Kelly Services, Inc. and Korn/Ferry International are both Staffing & Employment Services companies. Korn/Ferry International is the larger, with a market value of $3.9B against $659.7M — 6.0× the size. Kelly Services, Inc. has negative trailing earnings, so its P/E is not meaningful; Korn/Ferry International trades at 13.3×. Korn/Ferry International grew revenue faster over the last twelve months: 6.94% against −9.63%. Korn/Ferry International has the higher net margin (9.24% vs −6.73%) and the higher return on invested capital (15.2% vs −5.54%). Both pay a dividend; Korn/Ferry International yields more (1.75% vs 1.63%). Across the 22 metrics below, Korn/Ferry International leads on 18 and Kelly Services, Inc. on 4.

Valuation

Metric KELYB KFY Staffing & Employment Services median
P/E n/m 13.28 24.32
P/S 0.19 1.21 0.41
P/B 0.78 1.80 1.28
Price to free cash flow 35.81 11.33 18.57
EV/EBITDA 13.40 6.70 10.55
EV/Sales 0.20 1.08 0.40
Earnings yield (35.20%) 7.53% 0.99%
Free cash flow yield 2.79% 8.82% 2.79%

Profitability

Metric KELYB KFY Staffing & Employment Services median
Gross margin 19.67% 25.01% 23.11%
Operating margin (2.26%) 12.88% 0.08%
Net margin (6.73%) 9.24% 0.23%
Free cash flow margin 0.53% 10.67% 1.23%
Return on equity (24.32%) 14.16% 2.31%
Return on assets (11.41%) 7.42% 0.00%
Return on invested capital (5.54%) 15.18% 0.00%

Growth

Metric KELYB KFY Staffing & Employment Services median
Revenue growth (TTM) (9.63%) 6.94% 0.69%
EPS growth (last fiscal year) (36,100.00%) 13.48% —
Revenue growth, 5-year CAGR (1.20%) 10.06% 1.23%
Net income growth, 5-year CAGR 0.00% 19.66% 0.00%

Health

Metric KELYB KFY Staffing & Employment Services median
Debt to equity 0.08 0.20 0.08
Current ratio 1.50 2.37 1.50
Net debt to EBITDA 0.81 (1.55) (0.22)

Dividend

Metric KELYB KFY Staffing & Employment Services median
Dividend yield 1.63% 1.75% 2.16%
Payout ratio 7.50 0.19 0.30

Size

Metric KELYB KFY Staffing & Employment Services median
Market cap 659.70m 3.93b 590.17m

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