Kforce, Inc. (KFRC) vs Korn/Ferry International (KFY)

Kforce, 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 $919.6M — 4.3× the size. Korn/Ferry International trades at the lower P/E: 13.3× against 24.3×. Korn/Ferry International grew revenue faster over the last twelve months: 6.94% against −1.26%. Korn/Ferry International has the higher net margin (9.24% vs 2.71%) and the higher return on invested capital (15.2% vs 14.7%). Both pay a dividend; Kforce, Inc. yields more (2.23% vs 1.75%). Across the 23 metrics below, Korn/Ferry International leads on 17 and Kforce, Inc. on 6.

Valuation

Metric KFRC KFY Staffing & Employment Services median
P/E 24.32 13.28 24.32
P/S 0.64 1.21 0.41
P/B 6.99 1.80 1.28
Price to free cash flow 38.31 11.33 18.57
EV/EBITDA 16.36 6.70 10.55
EV/Sales 0.73 1.08 0.40
Earnings yield 4.11% 7.53% 0.99%
Free cash flow yield 2.61% 8.82% 2.79%

Profitability

Metric KFRC KFY Staffing & Employment Services median
Gross margin 27.67% 25.01% 23.11%
Operating margin 4.04% 12.88% 0.08%
Net margin 2.71% 9.24% 0.23%
Free cash flow margin 1.68% 10.67% 1.23%
Return on equity 28.27% 14.16% 2.31%
Return on assets 9.31% 7.42% 0.00%
Return on invested capital 14.73% 15.18% 0.00%

Growth

Metric KFRC KFY Staffing & Employment Services median
Revenue growth (TTM) (1.26%) 6.94% 0.69%
EPS growth (last fiscal year) (26.87%) 13.48% —
Revenue growth, 5-year CAGR (1.00%) 10.06% 1.23%
Net income growth, 5-year CAGR (9.08%) 19.66% 0.00%

Health

Metric KFRC KFY Staffing & Employment Services median
Debt to equity 0.87 0.20 0.08
Current ratio 1.93 2.37 1.50
Net debt to EBITDA 1.16 (1.55) (0.22)

Dividend

Metric KFRC KFY Staffing & Employment Services median
Dividend yield 2.23% 1.75% 2.16%
Payout ratio 0.41 0.19 0.30

Size

Metric KFRC KFY Staffing & Employment Services median
Market cap 919.63m 3.93b 590.17m

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