Korn/Ferry International (NYSE:KFY – Get Free Report) and Exponent (NASDAQ:EXPO – Get Free Report) are both mid-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.
Dividends
Korn/Ferry International pays an annual dividend of $2.20 per share and has a dividend yield of 3.1%. Exponent pays an annual dividend of $1.24 per share and has a dividend yield of 1.9%. Korn/Ferry International pays out 41.5% of its earnings in the form of a dividend. Exponent pays out 55.6% 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 and Exponent has raised its dividend for 12 consecutive years. Korn/Ferry International is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Korn/Ferry International and Exponent, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Korn/Ferry International | 0 | 1 | 4 | 0 | 2.80 |
| Exponent | 0 | 2 | 2 | 0 | 2.50 |
Risk and Volatility
Korn/Ferry International has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Exponent has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.
Institutional and Insider Ownership
98.8% of Korn/Ferry International shares are owned by institutional investors. Comparatively, 92.4% of Exponent shares are owned by institutional investors. 1.0% of Korn/Ferry International shares are owned by company insiders. Comparatively, 1.7% of Exponent shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Korn/Ferry International and Exponent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Korn/Ferry International | 9.36% | 14.43% | 7.36% |
| Exponent | 17.67% | 31.48% | 15.53% |
Earnings and Valuation
This table compares Korn/Ferry International and Exponent”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Korn/Ferry International | $2.99 billion | 1.31 | $277.43 million | $5.30 | 13.58 |
| Exponent | $582.01 million | 5.27 | $106.01 million | $2.23 | 28.94 |
Korn/Ferry International has higher revenue and earnings than Exponent. Korn/Ferry International is trading at a lower price-to-earnings ratio than Exponent, indicating that it is currently the more affordable of the two stocks.
Summary
Korn/Ferry International beats Exponent on 9 of the 17 factors compared between the two stocks.
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.
About Exponent
Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company in the United States and internationally. The company operates in two segments, Engineering and Other Scientific, and Environmental and Health. The Engineering and Other Scientific segment provides services in the areas of biomechanics, biomedical engineering and sciences, buildings and structures, civil engineering, construction consulting, data sciences, electrical engineering and computer science, human factors, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, thermal sciences, and vehicle engineering. The Environmental and Health segment offers services in the areas of chemical regulation and food safety, ecological and biological sciences, environmental and earth sciences, and health sciences. The company offers approximately 90 technical disciplines to solve pressing and complicated challenges facing stakeholders. It serves clients in chemical, construction, consumer products, energy, food, beverage and nutrition, government, life sciences, insurance, manufacturing, technology, industrial equipment, transportation, and other sectors of the economy. The company was formerly known as The Failure Group, Inc. and changed its name to Exponent, Inc. in 1998. The company was founded in 1967 and is headquartered in Menlo Park, California.
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