Head-To-Head Contrast: Randstad (OTCMKTS:RANJY) and Kforce (NASDAQ:KFRC)

Randstad (OTCMKTS:RANJY) and Kforce (NASDAQ:KFRC) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Dividends

Randstad pays an annual dividend of $0.73 per share and has a dividend yield of 3.2%. Kforce pays an annual dividend of $1.60 per share and has a dividend yield of 3.0%. Randstad pays out 70.9% of its earnings in the form of a dividend. Kforce pays out 75.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Randstad is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Randstad	$26.10 billion	0.31	$338.29 million	$1.03	22.08
Kforce	$1.34 billion	0.72	$50.41 million	$2.12	25.52

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Randstad and Kforce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Randstad	2	5	0	0	1.71
Kforce	0	3	2	0	2.40

Kforce has a consensus price target of $60.67, indicating a potential upside of 12.12%. Given Kforce’s stronger consensus rating and higher probable upside, analysts clearly believe Kforce is more favorable than Randstad.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Randstad	1.39%	11.76%	4.28%
Kforce	3.59%	30.34%	13.76%

Risk & Volatility

Randstad has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Kforce has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Randstad shares are owned by institutional investors. Comparatively, 92.8% of Kforce shares are owned by institutional investors. 7.3% of Kforce shares are owned by company 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.

Summary

Kforce beats Randstad on 10 of the 16 factors compared between the two stocks.

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.

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.