ManpowerGroup (NYSE:MAN) and Korn/Ferry International (NYSE:KFY) Head to Head Survey

ManpowerGroup (NYSE:MAN) and Korn/Ferry International (NYSE:KFY) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Earnings & Valuation

This table compares ManpowerGroup 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
ManpowerGroup	$17.85 billion	0.10	$145.10 million	($0.38)	-100.96
Korn/Ferry International	$2.76 billion	1.34	$246.06 million	$4.71	15.00

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

Risk & Volatility

ManpowerGroup has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Korn/Ferry International has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ManpowerGroup	-0.09%	7.98%	2.02%
Korn/Ferry International	8.95%	14.55%	7.29%

Analyst Ratings

This is a breakdown of current ratings and target prices for ManpowerGroup and Korn/Ferry International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ManpowerGroup	1	5	0	0	1.83
Korn/Ferry International	0	1	2	0	2.67

ManpowerGroup currently has a consensus target price of $48.20, indicating a potential upside of 25.64%. Korn/Ferry International has a consensus target price of $81.00, indicating a potential upside of 14.63%. Given ManpowerGroup’s higher probable upside, equities research analysts clearly believe ManpowerGroup is more favorable than Korn/Ferry International.

Dividends

ManpowerGroup pays an annual dividend of $1.44 per share and has a dividend yield of 3.8%. Korn/Ferry International pays an annual dividend of $1.92 per share and has a dividend yield of 2.7%. ManpowerGroup pays out -378.9% of its earnings in the form of a dividend. Korn/Ferry International pays out 40.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Korn/Ferry International has increased its dividend for 5 consecutive years. ManpowerGroup is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

98.0% of ManpowerGroup shares are held by institutional investors. Comparatively, 98.8% of Korn/Ferry International shares are held by institutional investors. 3.1% of ManpowerGroup shares are held by insiders. Comparatively, 1.0% of Korn/Ferry International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Korn/Ferry International beats ManpowerGroup on 12 of the 17 factors compared between the two stocks.

About ManpowerGroup

ManpowerGroup Inc. provides workforce solutions and services worldwide. The company offers recruitment services, including permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions under the Manpower and Experis brands. It also offers various assessment services; training and development services; career and talent management; and outsourcing services related to human resources functions primarily in the areas of large-scale recruiting and workforce-intensive initiatives. In addition, the company provides workforce consulting services; contingent staffing and permanent recruitment services; professional resourcing and project-based services; and recruitment process outsourcing, TAPFIN managed, and talent solutions. The company was incorporated in 1948 and is headquartered in Milwaukee, Wisconsin.

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.