Head-To-Head Survey: Kforce (KFRC) vs. STHREE (STREF)

Kforce (NASDAQ: KFRC) and STHREE (OTCMKTS:STREF) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Volatility & Risk

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Kforce has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, STHREE has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Profitability

This table compares Kforce and STHREE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kforce 2.45% 29.84% 10.21%
STHREE N/A N/A N/A

Dividends

Kforce pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. STHREE does not pay a dividend. Kforce pays out 30.6% of its earnings in the form of a dividend.

Insider and Institutional Ownership

79.6% of Kforce shares are owned by institutional investors. 13.3% of Kforce shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Kforce and STHREE, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kforce 0 2 2 0 2.50
STHREE 0 0 0 0 N/A

Kforce presently has a consensus target price of $26.25, indicating a potential downside of 5.06%. Given Kforce’s higher possible upside, research analysts clearly believe Kforce is more favorable than STHREE.

Earnings and Valuation

This table compares Kforce and STHREE’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kforce $1.36 billion 0.53 $33.28 million $1.57 17.61
STHREE $1.32 billion 0.45 N/A N/A N/A

Kforce has higher revenue and earnings than STHREE.

Summary

Kforce beats STHREE on 11 of the 12 factors compared between the two stocks.

About Kforce

Kforce Inc. provides professional staffing services and solutions in the United States and internationally. It operates through Technology (Tech), Finance and Accounting (FA), and Government Solutions (GS) segments. The Tech segment provides temporary staffing and permanent placement services to its clients primarily in the areas of information technology, such as systems/applications architecture and development, project management, enterprise data management, business intelligence, artificial intelligence, machine learning, network architecture, and security. This segment serves clients in various industries comprising financial services, communications, insurance services, and government sectors. The FA segment offers temporary staffing and permanent placement services to its clients in areas, such as general accounting, business analysis, accounts payable, accounts receivable, financial analysis and reporting, taxation, budget preparation and analysis, mortgage and loan processing, cost analysis, professional administration, outsourced functional support, credit and collections, audit services, and systems and controls analysis and documentation. This segment serves clients in various industries, including financial services, healthcare, and government sectors. The GS segment provides staffing services and solutions to the Federal Government as a prime and a subcontractor. It offers integrated business solutions to its clients in areas, such as information technology infrastructure transformation, healthcare informatics, data and knowledge management and analytics, research and development, audit readiness, financial management, and accounting. Kforce Inc. was founded in 1962 and is headquartered in Tampa, Florida.

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