BG Staffing (NASDAQ: BGSF) and Kelly Services (NASDAQ:KELYA) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for BG Staffing and Kelly Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BG Staffing 0 0 0 0 N/A
Kelly Services 0 1 0 0 2.00

Valuation and Earnings

This table compares BG Staffing and Kelly Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BG Staffing $257.30 million 0.55 $22.46 million N/A N/A
Kelly Services $5.18 billion 0.16 $98.70 million $3.39 6.40

Kelly Services has higher revenue and earnings than BG Staffing.

Dividends

Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. BG Staffing does not pay a dividend. Kelly Services pays out 8.8% of its earnings in the form of a dividend.

Profitability

This table compares BG Staffing and Kelly Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BG Staffing 3.32% 22.69% 9.91%
Kelly Services 2.58% 6.88% 3.41%

Institutional and Insider Ownership

65.8% of Kelly Services shares are owned by institutional investors. 13.3% of Kelly Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

BG Staffing beats Kelly Services on 6 of the 11 factors compared between the two stocks.

BG Staffing Company Profile

BG Staffing, Inc. (BG Staffing) is a provider of temporary staffing services. The Company provides temporary workers to a range of customers that are seeking to match their workforce requirements to their business needs. Its customers operate across a diverse set of industries. The Company’s operations are organized into three segments: Commercial, Multifamily and Professional. The Company’s temporary staffing services consist of on-demand or short-term staffing assignments, contract staffing, and on-site management administration. Short-term staffing services assist employers in dealing with employee demands caused by such factors as seasonality, fluctuations in customer demand, vacations, illnesses, parental leave, and special projects. The Company’s contract staffing services place temporary employees with customers for time-periods of more than three months or for an indefinite time period.

Kelly Services Company Profile

Kelly Services, Inc. is a workforce solutions provider, which is engaged in offering a range of specialty services. The Company provides workforce solutions in three regions: the Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific (APAC). The Company’s segments are Americas Commercial, Americas Professional and Technical (Americas PT), EMEA Commercial, EMEA Professional and Technical (EMEA PT), and Outsourcing and Consulting Group (OCG). The Americas Commercial segment includes Office, Contact Center, Education, Marketing and Electronic Assembly. The Americas PT segment includes a range of specialty staffing services. The EMEA Commercial segment provides a range of staffing services, including Office, Contact Center and its temporary-to-hire service. The EMEA PT segment provides Engineering, Finance and Accounting services. The OCG segment delivers talent management solutions across multiple regions, skill sets and a spectrum of talent categories.

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