Kelly Services (NASDAQ:KELYA) vs. Randstad (OTCMKTS:RANJY) Head-To-Head Contrast

Randstad (OTCMKTS:RANJY) and Kelly Services (NASDAQ:KELYA) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

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	0.37%	8.78%	3.24%
Kelly Services	-0.14%	5.65%	2.72%

Dividends

Randstad pays an annual dividend of $0.69 per share and has a dividend yield of 2.9%. Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. Randstad pays out 287.5% 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 -150.0% of its earnings in the form of a dividend.

Risk and Volatility

Randstad has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Kelly Services has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Randstad shares are held by institutional investors. Comparatively, 76.3% of Kelly Services shares are held by institutional investors. 48.1% of Kelly Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Randstad	$26.11 billion	0.33	$133.10 million	$0.24	99.72
Kelly Services	$4.33 billion	0.11	-$600,000.00	($0.20)	-70.55

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 summary of recent recommendations and price targets for Randstad and Kelly Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Randstad	0	2	0	2	3.00
Kelly Services	0	0	1	0	3.00

Kelly Services has a consensus price target of $25.00, indicating a potential upside of 77.18%. Given Kelly Services’ higher possible upside, analysts clearly believe Kelly Services is more favorable than Randstad.

Summary

Randstad beats Kelly Services on 11 of the 16 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., together with its subsidiaries, provides workforce solutions to various industries. The company operates through five segments: Professional & Industrial; Science, Engineering & Technology; Education; Outsourcing & Consulting; and International. The Professional & Industrial segment delivers staffing, outcome-based, and permanent placement services providing administrative, accounting, and finance; light industrial; contact center staffing; and other workforce solutions. The Science, Engineering & Technology segment offers staffing, outcome-based, and permanent placement services in the areas of science and clinical research, engineering, technology, and telecommunications specialties. The Education segment provides staffing, permanent placement, and executive search services to pre-K-12 school districts and education organizations. The Outsourcing & Consulting segment offers managed service provider, recruitment process outsourcing, payroll process outsourcing, and executive coaching programs to customers on a global basis that includes its RocketPower brand. The International segment provides staffing, recruitment process outsourcing, and permanent placement services. The company serves customers in the United States, Canada, Mexico, Puerto Rico, France, Switzerland, Portugal, Russia, Italy, rest of Europe, and the Asia-Pacific region. Kelly Services, Inc. was founded in 1946 and is headquartered in Troy, Michigan.