Kforce (KFRC) & Its Rivals Head to Head Comparison

Kforce (NASDAQ:KFRC) is one of 203 public companies in the “Professional Services” industry, but how does it compare to its competitors? We will compare Kforce to similar companies based on the strength of its institutional ownership, analyst recommendations, dividends, earnings, risk, profitability and valuation.

Dividends

Kforce pays an annual dividend of $1.60 per share and has a dividend yield of 2.8%. 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. As a group, “Professional Services” companies pay a dividend yield of 2.5% and pay out -162.7% of their earnings in the form of a dividend.

Institutional & Insider Ownership

92.8% of Kforce shares are held by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are held by institutional investors. 7.3% of Kforce shares are held by company insiders. Comparatively, 17.2% of shares of all “Professional Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Kforce and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kforce	$1.34 billion	$50.41 million	26.87
Kforce Competitors	$3.30 billion	$228.36 million	29.79

Kforce’s competitors have higher revenue and earnings than Kforce. Kforce is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Kforce and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kforce	0	3	2	0	2.40
Kforce Competitors	1578	6438	9198	430	2.48

Kforce currently has a consensus target price of $63.00, indicating a potential upside of 10.61%. As a group, “Professional Services” companies have a potential upside of 28.88%. Given Kforce’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Kforce has less favorable growth aspects than its competitors.

Volatility and Risk

Kforce has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Kforce’s competitors have a beta of 0.98, meaning that their average share price is 2% less volatile than the S&P 500.

Profitability

This table compares Kforce and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kforce	3.59%	30.34%	13.76%
Kforce Competitors	-0.60%	20.34%	4.31%

Summary

Kforce competitors beat Kforce on 10 of the 15 factors compared.

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.