Thomson Reuters (NASDAQ:TRI – Get Free Report) and Korn/Ferry International (NYSE:KFY – Get Free Report) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.
Valuation & Earnings
This table compares Thomson Reuters and Korn/Ferry International”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Thomson Reuters | $7.83 billion | 5.66 | $1.50 billion | $3.76 | 27.08 |
| Korn/Ferry International | $2.94 billion | 1.46 | $277.43 million | $5.24 | 16.05 |
Profitability
This table compares Thomson Reuters and Korn/Ferry International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Thomson Reuters | 21.22% | 15.82% | 10.27% |
| Korn/Ferry International | 9.44% | 14.34% | 7.31% |
Risk and Volatility
Thomson Reuters has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Korn/Ferry International has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Thomson Reuters and Korn/Ferry International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Thomson Reuters | 1 | 5 | 10 | 1 | 2.65 |
| Korn/Ferry International | 0 | 1 | 4 | 0 | 2.80 |
Thomson Reuters currently has a consensus price target of $142.83, indicating a potential upside of 40.26%. Korn/Ferry International has a consensus price target of $78.50, indicating a potential downside of 6.68%. Given Thomson Reuters’ higher possible upside, equities analysts plainly believe Thomson Reuters is more favorable than Korn/Ferry International.
Institutional and Insider Ownership
17.3% of Thomson Reuters shares are owned by institutional investors. Comparatively, 98.8% of Korn/Ferry International shares are owned by institutional investors. 1.0% of Korn/Ferry International shares are owned by company 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.
Dividends
Thomson Reuters pays an annual dividend of $2.62 per share and has a dividend yield of 2.6%. Korn/Ferry International pays an annual dividend of $2.20 per share and has a dividend yield of 2.6%. Thomson Reuters pays out 69.7% of its earnings in the form of a dividend. Korn/Ferry International pays out 42.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Korn/Ferry International has raised its dividend for 5 consecutive years. Korn/Ferry International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Thomson Reuters beats Korn/Ferry International on 10 of the 18 factors compared between the two stocks.
About Thomson Reuters
Thomson Reuters Corporation provides business information services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in five segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print. The Legal Professionals segment offers research and workflow products focusing on legal research and integrated legal workflow solutions that combine content, tools, and analytics to law firms and governments. The Corporates segment provides a suite of content-enabled technology solutions for legal, tax, regulatory, compliance, and IT professionals. The Tax & Accounting Professionals segment offers research and workflow products focusing on tax offerings and automating tax workflows to tax, accounting, and audit professionals in accounting firms. The Reuters News segment provides business, financial, and international news to media organizations, professional, and news consumers through news agency and industry events. The Global Print segment offers legal and tax information primarily in print format to legal and tax professionals, governments, law schools, and corporations. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company was founded in 1851 and is headquartered in Toronto, Canada. Thomson Reuters Corporation is a subsidiary of The Woodbridge Company Limited.
About Korn/Ferry International
Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company provides executive search services to recruit board level, chief executive, other senior executive, and general management talent of organizations. It also offers organizational strategy, assessment and succession, leadership and professional development, and total reward services. In addition, the company provides RPO, business project, professional search, and outsource recruiting solutions. Further, the company offers tech-enabled solutions that identify structures, roles, capabilities, and behaviors to drive businesses. It serves public and private companies, and middle market and emerging growth companies, as well as government and non-profit organizations. The company was formerly known as Korn/Ferry International and changed its name to Korn Ferry in January 2019. Korn Ferry was founded in 1969 and is based in Los Angeles, California.
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