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 $4.0B against $1.9B — 2.1× the size. Insperity, Inc. has negative trailing earnings, so its P/E is not meaningful; Korn/Ferry International trades at 13.5×. 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 (4.67% vs 2.92%). 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 13.52 n/m 23.42
P/S 1.23 0.28 0.36
P/B 1.84 32.01 1.01
Price to free cash flow 11.54 10.06 16.25
EV/EBITDA 6.80 40.77 9.41
EV/Sales 1.10 0.24 0.40
Earnings yield 7.39% (0.84%) 1.15%
Free cash flow yield 8.67% 9.94% 2.73%

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%) 0.27%
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%) (27.86%)
Revenue growth, 5-year CAGR 10.06% 9.70% 2.59%
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 2.92% 4.67% 2.46%
Payout ratio 0.40 — 0.42

Size

Metric KFY NSP Staffing & Employment Services median
Market cap 3.98b 1.94b 558.08m

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