Randstad (OTCMKTS:RANJY – Get Free Report) and Kelly Services (NASDAQ:KELYB – Get Free Report) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Profitability
This table compares Randstad and Kelly Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Randstad | 1.24% | 11.13% | 4.05% |
| Kelly Services | -5.98% | 4.05% | 1.91% |
Earnings & Valuation
This table compares Randstad and Kelly Services”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Randstad | $26.10 billion | 0.20 | $338.29 million | $0.91 | 15.90 |
| Kelly Services | $4.25 billion | 0.13 | -$254.10 million | ($7.27) | -2.29 |
Randstad has higher revenue and earnings than Kelly Services. Kelly Services is trading at a lower price-to-earnings ratio than Randstad, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Randstad and Kelly Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Randstad | 1 | 3 | 0 | 1 | 2.20 |
| Kelly Services | 1 | 0 | 0 | 0 | 1.00 |
Insider & Institutional Ownership
0.0% of Randstad shares are held by institutional investors. Comparatively, 0.2% of Kelly Services shares are held by institutional investors. 93.1% of Kelly Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Dividends
Randstad pays an annual dividend of $0.73 per share and has a dividend yield of 5.0%. Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. Randstad pays out 80.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kelly Services pays out -4.1% of its earnings in the form of a dividend.
Volatility & Risk
Randstad has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Kelly Services has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.
Summary
Randstad beats Kelly Services on 12 of the 15 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 Kelly Services
Kelly Services, Inc. engages in staffing and workforce solutions. It operates through the following segments: Americas Staffing, Global Talent Solutions, and International Staffing. The Americas Staffing segment delivers temporary staffing, as well as direct-hire placement services, in a number of specialty staffing services, including office, education, marketing, electronic assembly, light industrial, science, engineering, and information technology in United States, Puerto Rico, Canada, Mexico and Brazil. The Global Talent Solutions segment offers outsourcing, consulting, and centrally delivered staffing business. The International Staffing segment relates to branch-delivered staffing business in the Europe, Middle East, and Africa region, as well as in the Asia Pacific. The company was founded by William Russell Kelly on October 7, 1946 and is headquartered in Troy, MI.
Receive News & Ratings for Randstad Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Randstad and related companies with MarketBeat.com's FREE daily email newsletter.
