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 $4.0B against $926.3M — 4.3× the size. Korn/Ferry International trades at the lower P/E: 13.5× against 24.1×. 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 (3.12% vs 2.92%). 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 24.06 13.52 23.42
P/S 0.64 1.23 0.36
P/B 6.92 1.84 1.01
Price to free cash flow 37.90 11.54 16.25
EV/EBITDA 17.81 6.80 9.41
EV/Sales 0.79 1.10 0.40
Earnings yield 4.16% 7.39% 1.15%
Free cash flow yield 2.64% 8.67% 2.73%

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% 0.27%
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% (27.86%)
Revenue growth, 5-year CAGR (1.00%) 10.06% 2.59%
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 3.12% 2.92% 2.46%
Payout ratio 0.75 0.40 0.42

Size

Metric KFRC KFY Staffing & Employment Services median
Market cap 926.25m 3.98b 558.08m

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