Critical Survey: Kelly Services (NASDAQ:KELYB) vs. Clarivate (NYSE:CLVT)

Clarivate (NYSE:CLVTGet Free Report) and Kelly Services (NASDAQ:KELYBGet Free Report) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Valuation and Earnings

This table compares Clarivate and Kelly Services”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clarivate $2.46 billion 0.52 -$201.10 million ($0.52) -3.86
Kelly Services $4.25 billion 0.19 -$254.10 million ($7.60) -3.03

Clarivate has higher earnings, but lower revenue than Kelly Services. Clarivate is trading at a lower price-to-earnings ratio than Kelly Services, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Clarivate -13.84% 9.15% 3.99%
Kelly Services -6.44% 3.07% 1.41%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Clarivate and Kelly Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clarivate 3 4 1 0 1.75
Kelly Services 1 0 0 0 1.00

Clarivate presently has a consensus target price of $3.02, indicating a potential upside of 50.46%. Given Clarivate’s stronger consensus rating and higher possible upside, research analysts plainly believe Clarivate is more favorable than Kelly Services.

Insider & Institutional Ownership

85.7% of Clarivate shares are held by institutional investors. Comparatively, 0.2% of Kelly Services shares are held by institutional investors. 22.9% of Clarivate shares are held by insiders. Comparatively, 93.1% of Kelly Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Clarivate has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Kelly Services has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Summary

Clarivate beats Kelly Services on 10 of the 14 factors compared between the two stocks.

About Clarivate

(Get Free Report)

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.

About Kelly Services

(Get Free Report)

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.

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