On Assignment (NYSE: ASGN) and Kforce (NASDAQ:KFRC) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.
Risk and Volatility
On Assignment has a beta of 2.13, suggesting that its stock price is 113% more volatile than the S&P 500. Comparatively, Kforce has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for On Assignment and Kforce, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
On Assignment currently has a consensus target price of $56.00, indicating a potential upside of 19.97%. Kforce has a consensus target price of $24.67, indicating a potential upside of 37.80%. Given Kforce’s higher probable upside, analysts plainly believe Kforce is more favorable than On Assignment.
Kforce pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. On Assignment does not pay a dividend. Kforce pays out 35.0% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares On Assignment and Kforce’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|On Assignment||$2.53 billion||0.97||$263.01 million||$2.04||22.88|
|Kforce||$1.34 billion||0.34||$73.75 million||$1.37||13.07|
On Assignment has higher revenue and earnings than Kforce. Kforce is trading at a lower price-to-earnings ratio than On Assignment, indicating that it is currently the more affordable of the two stocks.
This table compares On Assignment and Kforce’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
91.4% of On Assignment shares are held by institutional investors. Comparatively, 78.9% of Kforce shares are held by institutional investors. 5.4% of On Assignment shares are held by insiders. Comparatively, 13.3% of Kforce shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
On Assignment beats Kforce on 10 of the 15 factors compared between the two stocks.
On Assignment Company Profile
On Assignment, Inc. is a global provider of in-demand, skilled professionals in the technology, life sciences and creative sectors. The Company matches resumes with job descriptions to match people they know into positions they understand for temporary, contract-to-hire, and direct hire assignments. It operates through two segments. The Apex segment provides technical, scientific and creative professionals for temporary, contract-to-hire and permanent placement positions and consulting services to clients across the United States. The Apex segment includes Apex Systems, Lab Support and Creative Circle. The Oxford segment provides specialized niche staffing, permanent placement and consulting services in select skill and geographic markets. The Oxford segment includes Oxford Global Resources, CyberCoders and Life Sciences Europe. The Company has a network of branch offices throughout the United States, Canada and Europe.
Kforce Company Profile
Kforce Inc. (Kforce) is engaged in providing professional and technical specialty staffing services and solutions. The Company operates through three segments, which include Technology (Tech), Finance and Accounting (FA) and Government Solutions (GS). The Company’s Tech segment includes the operations of its subsidiary Kforce Global Solutions, Inc. The FA segment is engaged in providing both temporary staffing and permanent placement services to its clients in areas, such as general accounting, business analysis and others. The GS segment is engaged in providing services and solutions to the Federal Government as both a prime contractor and a subcontractor in the fields of information technology, and finance and accounting. Kforce operates through field offices located throughout the United States and one office in Manila, the Philippines. The Company offers various staffing services that consist of temporary staffing services (Flex) and permanent placement services (Direct Hire).
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