Korn/Ferry International (KFY) vs Insperity, Inc. (NSP)

Korn/Ferry International and Insperity, Inc. are both Staffing & Employment Services companies. Korn/Ferry International is the larger, with a market value of $3.9B against $1.8B — 2.1× the size. Insperity, 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 2.64%. Korn/Ferry International has the higher net margin (9.24% vs −0.23%) and the higher return on invested capital (15.2% vs 0.00%). Both pay a dividend; Insperity, Inc. yields more (2.31% vs 1.75%). Across the 22 metrics below, Korn/Ferry International leads on 16 and Insperity, Inc. on 6.

Valuation

Metric KFY NSP Staffing & Employment Services median
P/E 13.28 n/m 24.32
P/S 1.21 0.26 0.41
P/B 1.80 29.80 1.28
Price to free cash flow 11.33 9.37 18.57
EV/EBITDA 6.70 37.48 10.55
EV/Sales 1.08 0.22 0.40
Earnings yield 7.53% (0.90%) 0.99%
Free cash flow yield 8.82% 10.67% 2.79%

Profitability

Metric KFY NSP Staffing & Employment Services median
Gross margin 25.01% 12.89% 23.11%
Operating margin 12.88% (0.04%) 0.08%
Net margin 9.24% (0.23%) 0.23%
Free cash flow margin 10.67% 2.82% 1.23%
Return on equity 14.16% (18.50%) 2.31%
Return on assets 7.42% (0.75%) 0.00%
Return on invested capital 15.18% 0.00% 0.00%

Growth

Metric KFY NSP Staffing & Employment Services median
Revenue growth (TTM) 6.94% 2.64% 0.69%
EPS growth (last fiscal year) 13.48% (107.85%) —
Revenue growth, 5-year CAGR 10.06% 9.70% 1.23%
Net income growth, 5-year CAGR 19.66% 0.00% 0.00%

Health

Metric KFY NSP Staffing & Employment Services median
Debt to equity 0.20 6.87 0.08
Current ratio 2.37 1.11 1.50
Net debt to EBITDA (1.55) (10.66) (0.22)

Dividend

Metric KFY NSP Staffing & Employment Services median
Dividend yield 1.75% 2.31% 2.16%
Payout ratio 0.19 0.45 0.30

Size

Metric KFY NSP Staffing & Employment Services median
Market cap 3.93b 1.83b 590.17m

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