Head to Head Survey: TrueBlue (TBI) vs. Kforce (KFRC)
TrueBlue (NYSE: TBI) and Kforce (NASDAQ:KFRC) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Insider and Institutional Ownership
90.1% of TrueBlue shares are held by institutional investors. Comparatively, 78.5% of Kforce shares are held by institutional investors. 2.0% of TrueBlue shares are held by company insiders. Comparatively, 13.3% of Kforce shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Kforce pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. TrueBlue does not pay a dividend. Kforce pays out 35.0% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares TrueBlue and Kforce’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TrueBlue||$2.61 billion||0.32||$138.93 million||$1.41||14.40|
|Kforce||$1.34 billion||0.34||$73.75 million||$1.37||13.14|
TrueBlue has higher revenue and earnings than Kforce. Kforce is trading at a lower price-to-earnings ratio than TrueBlue, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
TrueBlue has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500. Comparatively, Kforce has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.
This is a summary of current ratings and price targets for TrueBlue and Kforce, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TrueBlue presently has a consensus price target of $18.67, indicating a potential downside of 8.05%. Kforce has a consensus price target of $24.67, indicating a potential upside of 37.04%. Given Kforce’s stronger consensus rating and higher probable upside, analysts plainly believe Kforce is more favorable than TrueBlue.
This table compares TrueBlue and Kforce’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kforce beats TrueBlue on 9 of the 16 factors compared between the two stocks.
TrueBlue, Inc. is a provider of specialized workforce solutions. The Company is engaged in providing staffing, on-site workforce management and recruitment process outsourcing services. The Company operates through three segments: PeopleReady, PeopleManagement and PeopleScout. Its PeopleReady segment provides blue-collar contingent staffing through the PeopleReady service line. Its PeopleManagement segment provides primarily on-premise contingent staffing and on-premise management of those contingent staffing services through four segments: Staff Management a SMX (Staff Management), SIMOS Insourcing Solutions Corporation (SIMOS), Centerline and PlaneTechs. Its PeopleScout segment provides permanent employee recruitment process outsourcing (RPO) and management of outsourced labor service providers through two segments: PeopleScout and PeopleScout MSP.
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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