Reviewing Kforce (NASDAQ:KFRC) & Willdan Group (NASDAQ:WLDN)

Willdan Group (NASDAQ:WLDN) and Kforce (NASDAQ:KFRC) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Willdan Group and Kforce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Willdan Group	0	1	2	1	3.00
Kforce	0	3	2	0	2.40

Willdan Group presently has a consensus target price of $118.33, indicating a potential upside of 64.22%. Kforce has a consensus target price of $60.67, indicating a potential upside of 12.99%. Given Willdan Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Willdan Group is more favorable than Kforce.

Volatility and Risk

Willdan Group has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Kforce has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Earnings & Valuation

This table compares Willdan Group and Kforce”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Willdan Group	$741.84 million	1.48	$52.56 million	$4.26	16.92
Kforce	$1.34 billion	0.72	$50.41 million	$2.12	25.33

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

Insider & Institutional Ownership

72.3% of Willdan Group shares are held by institutional investors. Comparatively, 92.8% of Kforce shares are held by institutional investors. 5.6% of Willdan Group shares are held by insiders. Comparatively, 7.3% of Kforce shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Willdan Group and Kforce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Willdan Group	8.80%	24.51%	13.92%
Kforce	3.59%	30.34%	13.76%

Summary

Willdan Group beats Kforce on 9 of the 14 factors compared between the two stocks.

About Willdan Group

Willdan Group, Inc., together with its subsidiaries, provides professional, technical, and consulting services primarily in the United States. It operates in two segments, Energy, and Engineering and Consulting. The Energy segment offers comprehensive audit and surveys, program design and implementation, master planning, demand reduction, grid optimization, benchmarking analyses, design engineering, construction management, performance contracting, installation, alternative financing, measurement and verification services, and software and data analytics, as well as energy consulting and engineering, turnkey facility and infrastructure projects, and customer support services. The Engineering and Consulting segment provides building and safety, city engineering and code enforcement, development plan review and inspection, disaster recovery, geotechnical and earthquake engineering, planning and surveying, contract staff support, program and construction management, structural engineering, transportation and traffic engineering, and water resources services. This segment also offers district administration, financial consulting, and federal compliance services. It serves public and governmental agencies, including cities, counties, redevelopment agencies, water districts, school districts, and universities; investor and municipal owned energy utilities; state and federal agencies; and commercial and industrial firms, as well as various other special districts and agencies. The company was founded in 1964 and is headquartered in Anaheim, California.

About Kforce

Kforce Inc. provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security. This segment serves clients in various industries comprising financial and business services, communications, insurance, retail, and technology industries. The FA businesses segment offers talent solutions to its clients in areas, including financial planning and analysis, business intelligence analysis, general accounting, transactional accounting, business and cost analysis, and taxation and treasury. It also provides consultants in lower skilled areas comprising loan servicing and support, customer and call center support, data entry, and other administrative roles. This segment serves clients in various industries, including financial and business services, healthcare, and manufacturing sectors. The company was founded in 1962 and is headquartered in Tampa, Florida.