Kforce (KFRC) versus Its Rivals Critical Contrast

Kforce (NASDAQ: KFRC) is one of 23 public companies in the “Help supply services” industry, but how does it weigh in compared to its peers? We will compare Kforce to related businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Dividends

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Kforce pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. Kforce pays out 30.6% of its earnings in the form of a dividend. As a group, “Help supply services” companies pay a dividend yield of 1.5% and pay out 28.2% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Kforce and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Kforce $1.36 billion $33.28 million 18.09
Kforce Competitors $4.22 billion $125.65 million 11.46

Kforce’s peers have higher revenue and earnings than Kforce. Kforce is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Kforce and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kforce 0 2 2 0 2.50
Kforce Competitors 69 342 565 11 2.52

Kforce presently has a consensus price target of $26.25, indicating a potential downside of 7.57%. As a group, “Help supply services” companies have a potential upside of 7.86%. Given Kforce’s peers stronger consensus rating and higher possible upside, analysts plainly believe Kforce has less favorable growth aspects than its peers.

Profitability

This table compares Kforce and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kforce 2.45% 29.84% 10.21%
Kforce Competitors 1.78% -1.82% 5.49%

Risk and Volatility

Kforce has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Kforce’s peers have a beta of 1.18, indicating that their average stock price is 18% more volatile than the S&P 500.

Insider and Institutional Ownership

79.6% of Kforce shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Help supply services” companies are owned by institutional investors. 13.3% of Kforce shares are owned by insiders. Comparatively, 20.0% of shares of all “Help supply services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Kforce peers beat Kforce on 8 of the 15 factors compared.

Kforce Company Profile

Kforce Inc. provides professional staffing services and solutions in the United States and internationally. It operates through Technology (Tech), Finance and Accounting (FA), and Government Solutions (GS) segments. The Tech segment provides temporary staffing and permanent placement services to its clients primarily in the areas of information technology, such as systems/applications architecture and development, project management, enterprise data management, business intelligence, artificial intelligence, machine learning, network architecture, and security. This segment serves clients in various industries comprising financial services, communications, insurance services, and government sectors. The FA segment offers temporary staffing and permanent placement services to its clients in areas, such as general accounting, business analysis, accounts payable, accounts receivable, financial analysis and reporting, taxation, budget preparation and analysis, mortgage and loan processing, cost analysis, professional administration, outsourced functional support, credit and collections, audit services, and systems and controls analysis and documentation. This segment serves clients in various industries, including financial services, healthcare, and government sectors. The GS segment provides staffing services and solutions to the Federal Government as a prime and a subcontractor. It offers integrated business solutions to its clients in areas, such as information technology infrastructure transformation, healthcare informatics, data and knowledge management and analytics, research and development, audit readiness, financial management, and accounting. Kforce Inc. was founded in 1962 and is headquartered in Tampa, Florida.

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