51job (NASDAQ: JOBS) and Kforce (NASDAQ:KFRC) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitabiliy and dividends.

Valuation & Earnings

This table compares 51job and Kforce’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
51job $356.59 million 7.78 $104.88 million $1.62 28.00
Kforce $1.33 billion 0.37 $73.79 million $1.34 14.40

51job has higher revenue, but lower earnings than Kforce. Kforce is trading at a lower price-to-earnings ratio than 51job, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares 51job and Kforce’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
51job 31.03% 14.53% 9.37%
Kforce 2.63% 29.68% 10.08%

Institutional and Insider Ownership

42.8% of 51job shares are owned by institutional investors. Comparatively, 77.7% of Kforce shares are owned by institutional investors. 13.3% of Kforce shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Kforce pays an annual dividend of $0.48 per share and has a dividend yield of 2.5%. 51job does not pay a dividend. Kforce pays out 35.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for 51job and Kforce, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
51job 0 0 0 0 N/A
Kforce 0 3 2 0 2.40

Kforce has a consensus price target of $23.67, indicating a potential upside of 22.63%. Given Kforce’s higher probable upside, analysts clearly believe Kforce is more favorable than 51job.

Risk and Volatility

51job has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Kforce has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Summary

Kforce beats 51job on 9 of the 15 factors compared between the two stocks.

51job Company Profile

51job, Inc. is a holding company. The Company is a provider of integrated human resource services in China. The Company focuses on online recruitment advertising. The Company operates over three Websites, including www.51job.com, www.yingjiesheng.com and www.51jingying.com, which are utilized by a base of corporate employers, reach an audience of job seekers and aggregate job information from over 100 cities across China. The Company provides a range of human resource services in the categories, such as recruitment advertising services, including online recruitment services provided by its Websites, and other human resource related services, including business process outsourcing, training, campus recruitment, professional assessment tools, salary and other human resource related surveys, human resource conferences and executive search services.

Kforce Company Profile

Kforce Inc. (Kforce) is engaged in providing professional and technical specialty staffing services and solutions. The Company operates through three segments, which include Technology (Tech), Finance and Accounting (FA) and Government Solutions (GS). The Company’s Tech segment includes the operations of its subsidiary Kforce Global Solutions, Inc. The FA segment is engaged in providing both temporary staffing and permanent placement services to its clients in areas, such as general accounting, business analysis and others. The GS segment is engaged in providing services and solutions to the Federal Government as both a prime contractor and a subcontractor in the fields of information technology, and finance and accounting. Kforce operates through field offices located throughout the United States and one office in Manila, the Philippines. The Company offers various staffing services that consist of temporary staffing services (Flex) and permanent placement services (Direct Hire).

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