Kelly Services, Inc. Class A (NYSE: MAN) and ManpowerGroup (NYSE:MAN) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.
Earnings & Valuation
This table compares Kelly Services, Inc. Class A and ManpowerGroup’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kelly Services, Inc. Class A||$5.37 billion||0.18||$71.59 million||$2.20||11.53|
|ManpowerGroup||$21.03 billion||0.28||$545.40 million||$7.04||13.05|
ManpowerGroup has higher revenue and earnings than Kelly Services, Inc. Class A. Kelly Services, Inc. Class A is trading at a lower price-to-earnings ratio than ManpowerGroup, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
67.0% of Kelly Services, Inc. Class A shares are owned by institutional investors. Comparatively, 92.1% of ManpowerGroup shares are owned by institutional investors. 12.1% of Kelly Services, Inc. Class A shares are owned by company insiders. Comparatively, 1.0% of ManpowerGroup shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Kelly Services, Inc. Class A and ManpowerGroup’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kelly Services, Inc. Class A||0.99%||7.62%||3.72%|
This is a breakdown of current ratings and recommmendations for Kelly Services, Inc. Class A and ManpowerGroup, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kelly Services, Inc. Class A||0||0||2||0||3.00|
Kelly Services, Inc. Class A presently has a consensus target price of $37.00, indicating a potential upside of 45.84%. ManpowerGroup has a consensus target price of $113.67, indicating a potential upside of 23.75%. Given Kelly Services, Inc. Class A’s stronger consensus rating and higher possible upside, analysts plainly believe Kelly Services, Inc. Class A is more favorable than ManpowerGroup.
Kelly Services, Inc. Class A pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. ManpowerGroup pays an annual dividend of $2.02 per share and has a dividend yield of 2.2%. Kelly Services, Inc. Class A pays out 13.6% of its earnings in the form of a dividend. ManpowerGroup pays out 28.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kelly Services, Inc. Class A has increased its dividend for 3 consecutive years and ManpowerGroup has increased its dividend for 7 consecutive years. ManpowerGroup is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Kelly Services, Inc. Class A has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, ManpowerGroup has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
ManpowerGroup beats Kelly Services, Inc. Class A on 13 of the 17 factors compared between the two stocks.
About Kelly Services, Inc. Class A
Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries worldwide. The company operates through three segments: Americas Staffing, Global Talent Solutions (GTS), and International Staffing. It provides trained employees for data entry, clerical, and administrative support roles across various industries; schools with instructional and non-instructional employees; support staff for seminars, sales, and trade shows; assemblers, quality control inspectors, and technicians for electronic assembly; maintenance workers, material handlers, and assemblers for light industrial works; scientists, and scientific and clinical research workforce solutions; engineering professionals across various disciplines, including aeronautical, chemical, civil/structural, electrical/instrumentation, environmental, industrial, mechanical, petroleum, pharmaceutical, quality, and telecommunications. The company also provides IT specialists across various disciplines; creative talent in the spectrum of creative services positions; corporate finance departments, accounting firms, and financial institutions with various levels of financial professionals; and legal professionals, including attorneys, paralegals, contract administrators, compliance specialists, and legal administrators. In addition, it provides chefs, porters, and hospitality representatives; and manual workers and semi-skilled professionals in various trade, non-trade, and operational positions. Further, the company provides centrally delivered staffing for large accounts; contingent workforce outsourcing, recruitment process outsourcing, business process outsourcing, and payroll process outsourcing services; contact center staffing solutions; and legal managed services, as well as executive placement, career transition/outplacement, and talent advisory services. Kelly Services, Inc. was founded in 1946 and is headquartered in Troy, Michigan.
ManpowerGroup Inc. provides workforce solutions and services in the Americas, Southern Europe, Northern Europe, and the Asia Pacific Middle East region. The company's recruitment service portfolio includes permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions. It also offers various assessment services; training and development services; career management; and outsourcing services related to human resources functions primarily in the areas of large-scale recruiting and workforce-intensive initiatives. In addition, the company provides workforce consulting services; contingent staffing and permanent recruitment services; professional resourcing and project-based solutions in information technology, engineering, and finance fields; solutions in the areas of organizational efficiency, individual development, and career mobility; and recruitment process outsourcing, TAPFIN managed, and talent based outsourcing services, as well as Proservia services in the areas of digital services market and IT infrastructure sector. It operates through a network of approximately 2,700 offices in 80 countries and territories. The company was founded in 1948 and is based in Milwaukee, Wisconsin.
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