Gartner (NYSE:IT – Get Free Report) and Kelly Services (NASDAQ:KELYA – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.
Valuation & Earnings
This table compares Gartner and Kelly Services”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gartner | $6.50 billion | 1.93 | $729.23 million | $11.15 | 17.85 |
| Kelly Services | $4.25 billion | 0.11 | -$254.10 million | ($7.81) | -1.80 |
Gartner has higher revenue and earnings than Kelly Services. Kelly Services is trading at a lower price-to-earnings ratio than Gartner, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
91.5% of Gartner shares are owned by institutional investors. Comparatively, 76.3% of Kelly Services shares are owned by institutional investors. 2.6% of Gartner shares are owned by insiders. Comparatively, 5.4% of Kelly Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Gartner and Kelly Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gartner | 14.81% | 1,440.35% | 13.56% |
| Kelly Services | -6.73% | 2.69% | 1.19% |
Analyst Ratings
This is a summary of recent recommendations for Gartner and Kelly Services, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gartner | 2 | 8 | 0 | 0 | 1.80 |
| Kelly Services | 1 | 1 | 1 | 0 | 2.00 |
Gartner presently has a consensus target price of $202.70, suggesting a potential upside of 1.83%. Kelly Services has a consensus target price of $20.00, suggesting a potential upside of 42.10%. Given Kelly Services’ stronger consensus rating and higher probable upside, analysts plainly believe Kelly Services is more favorable than Gartner.
Risk and Volatility
Gartner has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Kelly Services has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
Summary
Gartner beats Kelly Services on 9 of the 14 factors compared between the two stocks.
About Gartner
Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.
About Kelly Services
Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries. The company operates through five segments: Professional & Industrial; Science, Engineering & Technology; Education; Outsourcing & Consulting; and International. The Professional & Industrial segment delivers staffing, outcome-based, and permanent placement services providing administrative, accounting, and finance; light industrial; contact center staffing; and other workforce solutions. The Science, Engineering & Technology segment offers staffing, outcome-based, and permanent placement services in the areas of science and clinical research, engineering, technology, and telecommunications specialties. The Education segment provides staffing, permanent placement, and executive search services to pre-K-12 school districts and education organizations. The Outsourcing & Consulting segment offers managed service provider, recruitment process outsourcing, payroll process outsourcing, and executive coaching programs to customers on a global basis that includes its RocketPower brand. The International segment provides staffing, recruitment process outsourcing, and permanent placement services. The company serves customers in the United States, Canada, Mexico, Puerto Rico, France, Switzerland, Portugal, Russia, Italy, rest of Europe, and the Asia-Pacific region. Kelly Services, Inc. was founded in 1946 and is headquartered in Troy, Michigan.
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