Critical Survey: Kelly Services (KELYA) and Its Competitors

Kelly Services (NASDAQ: KELYA) is one of 23 publicly-traded companies in the “Help supply services” industry, but how does it weigh in compared to its rivals? We will compare Kelly Services to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, valuation, risk and earnings.

Dividends

Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. Kelly Services pays out 13.6% of its earnings in the form of a dividend. As a group, “Help supply services” companies pay a dividend yield of 1.5% and pay out 29.6% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Kelly Services and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Kelly Services $5.37 billion $71.59 million 9.94
Kelly Services Competitors $4.22 billion $125.65 million 13.60

Kelly Services has higher revenue, but lower earnings than its rivals. Kelly Services is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Kelly Services has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Kelly Services’ rivals have a beta of 1.20, suggesting that their average share price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Kelly Services and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kelly Services 0 0 0 0 N/A
Kelly Services Competitors 75 362 583 13 2.52

As a group, “Help supply services” companies have a potential upside of 7.37%. Given Kelly Services’ rivals higher probable upside, analysts plainly believe Kelly Services has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

69.4% of Kelly Services shares are held by institutional investors. Comparatively, 66.3% of shares of all “Help supply services” companies are held by institutional investors. 12.1% of Kelly Services shares are held by insiders. Comparatively, 13.9% of shares of all “Help supply services” companies 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.

Profitability

This table compares Kelly Services and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kelly Services 1.62% 7.57% 3.68%
Kelly Services Competitors 1.84% -16.70% 5.44%

Summary

Kelly Services rivals beat Kelly Services on 8 of the 12 factors compared.

About Kelly Services

Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries worldwide. The company operates through three segments: Americas Staffing, Global Talent Solutions (GTS), and International Staffing. It provides trained employees for data entry, clerical, and administrative support roles across various industries; schools with instructional and non-instructional employees; support staff for seminars, sales, and trade shows; assemblers, quality control inspectors, and technicians for electronic assembly; maintenance workers, material handlers, and assemblers for light industrial works; scientists, and scientific and clinical research workforce solutions; engineering professionals across various disciplines, including aeronautical, chemical, civil/structural, electrical/instrumentation, environmental, industrial, mechanical, petroleum, pharmaceutical, quality, and telecommunications. The company also provides IT specialists across various disciplines; creative talent in the spectrum of creative services positions; corporate finance departments, accounting firms, and financial institutions with various levels of financial professionals; and legal professionals, including attorneys, paralegals, contract administrators, compliance specialists, and legal administrators. In addition, it provides chefs, porters, and hospitality representatives; and manual workers and semi-skilled professionals in various trade, non-trade, and operational positions. Further, the company provides centrally delivered staffing for large accounts; contingent workforce outsourcing, recruitment process outsourcing, business process outsourcing, and payroll process outsourcing services; contact center staffing solutions; and legal managed services, as well as executive placement, career transition/outplacement, and talent advisory services. Kelly Services, Inc. was founded in 1946 and is headquartered in Troy, Michigan.

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