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 $4.2B against $997.7M — 4.2× the size. Korn/Ferry International trades at the lower P/E: 14.3× against 23.3×. Korn/Ferry International grew revenue faster over the last twelve months: 6.94% against 2.14%. Korn/Ferry International has the higher net margin (9.24% vs 2.98%) and the lower return on invested capital (15.2% vs 15.9%). Both pay a dividend; Kforce, Inc. yields more (2.86% vs 2.77%). Across the 23 metrics below, Korn/Ferry International leads on 16 and Kforce, Inc. on 7.

Valuation

Metric KFRC KFY Staffing & Employment Services median
P/E 23.27 14.25 23.57
P/S 0.68 1.30 0.28
P/B 6.85 1.94 1.24
Price to free cash flow 107.98 12.16 17.58
EV/EBITDA 17.04 7.21 11.38
EV/Sales 0.83 1.17 0.34
Earnings yield 4.30% 7.02% 0.15%
Free cash flow yield 0.93% 8.22% 0.39%

Profitability

Metric KFRC KFY Staffing & Employment Services median
Gross margin 27.79% 25.01% 25.01%
Operating margin 4.51% 12.88% 0.29%
Net margin 2.98% 9.24% 0.04%
Free cash flow margin 0.63% 10.67% 0.14%
Return on equity 30.46% 14.16% 2.93%
Return on assets 10.16% 7.42% 0.07%
Return on invested capital 15.85% 15.18% 0.32%

Growth

Metric KFRC KFY Staffing & Employment Services median
Revenue growth (TTM) 2.14% 6.94% (2.94%)
EPS growth (last fiscal year) (26.87%) 13.48% (21.61%)
Revenue growth, 5-year CAGR (1.00%) 10.06% 1.03%
Net income growth, 5-year CAGR (9.08%) 19.66% 0.00%

Health

Metric KFRC KFY Staffing & Employment Services median
Debt to equity 0.79 0.20 0.04
Current ratio 1.95 2.37 1.75
Net debt to EBITDA 1.16 (1.55) (0.08)

Dividend

Metric KFRC KFY Staffing & Employment Services median
Dividend yield 2.86% 2.77% 2.47%
Payout ratio 0.67 0.40 0.50

Size

Metric KFRC KFY Staffing & Employment Services median
Market cap 997.66m 4.21b 461.40m

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