Randstad (OTCMKTS:RANJY) & Kforce (NASDAQ:KFRC) Head to Head Survey

Kforce (NASDAQ:KFRC) and Randstad (OTCMKTS:RANJY) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Profitability

This table compares Kforce and Randstad’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kforce	3.59%	30.34%	13.76%
Randstad	1.39%	11.76%	4.28%

Volatility & Risk

Kforce has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Randstad has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Dividends

Kforce pays an annual dividend of $1.60 per share and has a dividend yield of 3.0%. Randstad pays an annual dividend of $0.73 per share and has a dividend yield of 3.2%. Kforce pays out 75.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Randstad pays out 70.9% of its earnings in the form of a dividend. Randstad is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

92.8% of Kforce shares are owned by institutional investors. Comparatively, 0.0% of Randstad shares are owned by institutional investors. 7.3% of Kforce shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Kforce and Randstad”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kforce	$1.34 billion	0.72	$50.41 million	$2.12	25.52
Randstad	$26.10 billion	0.31	$338.29 million	$1.03	22.08

Randstad has higher revenue and earnings than Kforce. Randstad is trading at a lower price-to-earnings ratio than Kforce, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Kforce and Randstad, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kforce	0	3	2	0	2.40
Randstad	2	5	0	0	1.71

Kforce presently has a consensus target price of $60.67, suggesting a potential upside of 12.12%. Given Kforce’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Kforce is more favorable than Randstad.

Summary

Kforce beats Randstad on 10 of the 16 factors compared between the two stocks.

About Kforce

Kforce Inc. provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security. This segment serves clients in various industries comprising financial and business services, communications, insurance, retail, and technology industries. The FA businesses segment offers talent solutions to its clients in areas, including financial planning and analysis, business intelligence analysis, general accounting, transactional accounting, business and cost analysis, and taxation and treasury. It also provides consultants in lower skilled areas comprising loan servicing and support, customer and call center support, data entry, and other administrative roles. This segment serves clients in various industries, including financial and business services, healthcare, and manufacturing sectors. The company was founded in 1962 and is headquartered in Tampa, Florida.

About Randstad

Randstad N.V. provides solutions in the field of work and human resources (HR) services. The company provides temporary staffing and permanent placement services; job posting; and résumé services on digital platforms. It offers inhouse, enterprise and digital, and tech suite services. In addition, the company provides managed services programs, recruitment process outsourcing, outplacement and career development, and online talent acquisition. It has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally. The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018. Randstad N.V. was founded in 1960 and is headquartered in Diemen, the Netherlands.