Kelly Services (NASDAQ:KELYB – Get Free Report) and Randstad (OTCMKTS:RANJY – Get Free Report) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.
Analyst Ratings
This is a summary of current recommendations for Kelly Services and Randstad, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kelly Services | 1 | 0 | 0 | 0 | 1.00 |
| Randstad | 1 | 4 | 0 | 0 | 1.80 |
Dividends
Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. Randstad pays an annual dividend of $0.73 per share and has a dividend yield of 5.0%. Kelly Services pays out -4.1% of its earnings in the form of a dividend. Randstad pays out 80.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kelly Services | $4.25 billion | 0.13 | -$254.10 million | ($7.27) | -2.20 |
| Randstad | $26.10 billion | 0.20 | $338.29 million | $0.91 | 16.15 |
Randstad has higher revenue and earnings than Kelly Services. Kelly Services is trading at a lower price-to-earnings ratio than Randstad, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Kelly Services and Randstad’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kelly Services | -5.98% | 4.05% | 1.91% |
| Randstad | 1.24% | 11.13% | 4.05% |
Risk & Volatility
Kelly Services has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Randstad has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.
Insider and Institutional Ownership
0.2% of Kelly Services shares are owned by institutional investors. Comparatively, 0.0% of Randstad shares are owned by institutional investors. 93.1% of Kelly Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Randstad beats Kelly Services on 11 of the 14 factors compared between the two stocks.
About Kelly Services
Kelly Services, Inc. engages in staffing and workforce solutions. It operates through the following segments: Americas Staffing, Global Talent Solutions, and International Staffing. The Americas Staffing segment delivers temporary staffing, as well as direct-hire placement services, in a number of specialty staffing services, including office, education, marketing, electronic assembly, light industrial, science, engineering, and information technology in United States, Puerto Rico, Canada, Mexico and Brazil. The Global Talent Solutions segment offers outsourcing, consulting, and centrally delivered staffing business. The International Staffing segment relates to branch-delivered staffing business in the Europe, Middle East, and Africa region, as well as in the Asia Pacific. The company was founded by William Russell Kelly on October 7, 1946 and is headquartered in Troy, MI.
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.
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