Head-To-Head Contrast: DLH (NASDAQ:DLHC) & Korn/Ferry International (NYSE:KFY)

DLH (NASDAQ:DLHC) and Korn/Ferry International (NYSE:KFY) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

67.3% of DLH shares are owned by institutional investors. Comparatively, 98.8% of Korn/Ferry International shares are owned by institutional investors. 15.3% of DLH shares are owned by insiders. Comparatively, 1.0% of Korn/Ferry International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for DLH and Korn/Ferry International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DLH	0	0	0	0	0.00
Korn/Ferry International	0	1	1	0	2.50

Korn/Ferry International has a consensus target price of $81.00, suggesting a potential upside of 15.09%. Given Korn/Ferry International’s stronger consensus rating and higher possible upside, analysts clearly believe Korn/Ferry International is more favorable than DLH.

Earnings and Valuation

This table compares DLH 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
DLH	$359.72 million	0.22	$7.40 million	$0.32	17.44
Korn/Ferry International	$2.76 billion	1.34	$246.06 million	$4.71	14.94

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DLH	1.27%	4.08%	1.47%
Korn/Ferry International	8.95%	14.55%	7.29%

Risk and Volatility

DLH has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Korn/Ferry International has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.

Summary

Korn/Ferry International beats DLH on 12 of the 14 factors compared between the two stocks.

About DLH

DLH Holdings Corp. provides technology-enabled business process outsourcing, program management solutions, and public health research and analytics services in the United States. It offers digital transformation and cyber security solutions, including artificial intelligence and machine learning, cloud enablement, cybersecurity ecosystem, big data analytics, and modeling and simulation to the National Institutes of Health (NIH), the Defense Health Agency, Tele-medicine and Advanced Technology Research Center, and US Navy Naval Information Warfare Center (NIWC). The company also provides science research and development services and solutions, such as data analytics, testing and evaluation, clinical trials research services, and epidemiology studies to support multiple operating divisions, including NIH and the Center for Disease Control and Prevention, as well as the Military Health System. In addition, it offers system engineering and integration solutions in the areas of pharmaceutical delivery logistics, fire protection engineering, biomedical equipment, and technology engineering on behalf of the Department of Veterans Affairs, NIWC, Health and Human Services, and other federal customers. The company also provides business process management services under the trademarks, e-PRAT and SPOT-m, as well as the registered trademark, Infinibyte for cloud-based solutions. The company was formerly known as TeamStaff, Inc. and changed its name to DLH Holdings Corp. in June 2012. DLH Holdings Corp. was incorporated in 1969 and is headquartered in Atlanta, Georgia.

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.