Kforce, Inc. (KFRC) vs Insperity, Inc. (NSP)

Kforce, Inc. and Insperity, Inc. are both Staffing & Employment Services companies. Insperity, Inc. is the larger, with a market value of $1.8B against $919.6M — 2.0× the size. Insperity, Inc. has negative trailing earnings, so its P/E is not meaningful; Kforce, Inc. trades at 24.3×. Insperity, Inc. grew revenue faster over the last twelve months: 2.64% against −1.26%. Kforce, Inc. has the higher net margin (2.71% vs −0.23%) and the higher return on invested capital (14.7% vs 0.00%). Both pay a dividend; Insperity, Inc. yields more (2.31% vs 2.23%). Across the 22 metrics below, Kforce, Inc. leads on 12 and Insperity, Inc. on 10.

Valuation

Metric KFRC NSP Staffing & Employment Services median
P/E 24.32 n/m 24.32
P/S 0.64 0.26 0.41
P/B 6.99 29.80 1.28
Price to free cash flow 38.31 9.37 18.57
EV/EBITDA 16.36 37.48 10.55
EV/Sales 0.73 0.22 0.40
Earnings yield 4.11% (0.90%) 0.99%
Free cash flow yield 2.61% 10.67% 2.79%

Profitability

Metric KFRC NSP Staffing & Employment Services median
Gross margin 27.67% 12.89% 23.11%
Operating margin 4.04% (0.04%) 0.08%
Net margin 2.71% (0.23%) 0.23%
Free cash flow margin 1.68% 2.82% 1.23%
Return on equity 28.27% (18.50%) 2.31%
Return on assets 9.31% (0.75%) 0.00%
Return on invested capital 14.73% 0.00% 0.00%

Growth

Metric KFRC NSP Staffing & Employment Services median
Revenue growth (TTM) (1.26%) 2.64% 0.69%
EPS growth (last fiscal year) (26.87%) (107.85%) —
Revenue growth, 5-year CAGR (1.00%) 9.70% 1.23%
Net income growth, 5-year CAGR (9.08%) 0.00% 0.00%

Health

Metric KFRC NSP Staffing & Employment Services median
Debt to equity 0.87 6.87 0.08
Current ratio 1.93 1.11 1.50
Net debt to EBITDA 1.16 (10.66) (0.22)

Dividend

Metric KFRC NSP Staffing & Employment Services median
Dividend yield 2.23% 2.31% 2.16%
Payout ratio 0.41 0.45 0.30

Size

Metric KFRC NSP Staffing & Employment Services median
Market cap 919.63m 1.83b 590.17m

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