Randstad (OTCMKTS:RANJY) and Korn/Ferry International (NYSE:KFY) Head-To-Head Contrast

Randstad (OTCMKTS:RANJY) and Korn/Ferry International (NYSE:KFY) are both mid-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Earnings & Valuation

This table compares Randstad and Korn/Ferry International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Randstad	$26.11 billion	0.34	$133.10 million	$0.32	75.95
Korn/Ferry International	$2.76 billion	1.39	$246.06 million	$4.62	16.14

Korn/Ferry International has lower revenue, but higher earnings than Randstad. Korn/Ferry International is trading at a lower price-to-earnings ratio than Randstad, indicating that it is currently the more affordable of the two stocks.

Dividends

Randstad pays an annual dividend of $0.69 per share and has a dividend yield of 2.8%. Korn/Ferry International pays an annual dividend of $1.92 per share and has a dividend yield of 2.6%. Randstad pays out 215.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Korn/Ferry International pays out 41.6% of its earnings in the form of a dividend. Korn/Ferry International has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Randstad and Korn/Ferry International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Randstad	0	2	0	1	2.67
Korn/Ferry International	0	1	1	0	2.50

Korn/Ferry International has a consensus target price of $81.00, indicating a potential upside of 8.64%. Given Korn/Ferry International’s higher possible upside, analysts plainly believe Korn/Ferry International is more favorable than Randstad.

Institutional & Insider Ownership

0.0% of Randstad shares are owned by institutional investors. Comparatively, 98.8% of Korn/Ferry International shares are owned by institutional investors. 1.4% of Korn/Ferry International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Randstad has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Korn/Ferry International has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Profitability

This table compares Randstad and Korn/Ferry International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Randstad	0.49%	9.48%	3.52%
Korn/Ferry International	8.91%	14.49%	7.21%

Summary

Korn/Ferry International beats Randstad on 13 of the 18 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 Korn/Ferry International

Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company provides executive search services to recruit board level, chief executive, other senior executive, and general management talent of organizations. It also offers organizational strategy, assessment and succession, leadership and professional development, and total reward services. In addition, the company provides RPO, business project, professional search, and outsource recruiting solutions. Further, the company offers tech-enabled solutions that identify structures, roles, capabilities, and behaviors to drive businesses. It serves public and private companies, and middle market and emerging growth companies, as well as government and non-profit organizations. The company was formerly known as Korn/Ferry International and changed its name to Korn Ferry in January 2019. Korn Ferry was founded in 1969 and is based in Los Angeles, California.