Kforce (NASDAQ:KFRC – Get Free Report) is one of 203 public companies in the “Professional Services” industry, but how does it weigh in compared to its rivals? We will compare Kforce to similar businesses based on the strength of its valuation, profitability, earnings, analyst recommendations, institutional ownership, dividends and risk.
Profitability
This table compares Kforce and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kforce | 3.59% | 30.34% | 13.76% |
| Kforce Competitors | -0.60% | 20.34% | 4.31% |
Insider & Institutional Ownership
92.8% of Kforce shares are held by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are held by institutional investors. 7.3% of Kforce shares are held by insiders. Comparatively, 17.2% of shares of all “Professional Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Kforce has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Kforce’s rivals have a beta of 0.98, suggesting that their average share price is 2% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations for Kforce and its rivals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kforce | 0 | 3 | 2 | 0 | 2.40 |
| Kforce Competitors | 1578 | 6438 | 9198 | 430 | 2.48 |
Kforce currently has a consensus price target of $63.00, suggesting a potential upside of 10.61%. As a group, “Professional Services” companies have a potential upside of 28.88%. Given Kforce’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Kforce has less favorable growth aspects than its rivals.
Valuation and Earnings
This table compares Kforce and its rivals top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Kforce | $1.34 billion | $50.41 million | 26.87 |
| Kforce Competitors | $3.30 billion | $228.36 million | 29.79 |
Kforce’s rivals have higher revenue and earnings than Kforce. Kforce is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Dividends
Kforce pays an annual dividend of $1.60 per share and has a dividend yield of 2.8%. Kforce pays out 75.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Professional Services” companies pay a dividend yield of 2.5% and pay out -162.7% of their earnings in the form of a dividend.
Summary
Kforce rivals beat Kforce on 10 of the 15 factors compared.
Kforce Company Profile
Kforce Inc. provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security. This segment serves clients in various industries comprising financial and business services, communications, insurance, retail, and technology industries. The FA businesses segment offers talent solutions to its clients in areas, including financial planning and analysis, business intelligence analysis, general accounting, transactional accounting, business and cost analysis, and taxation and treasury. It also provides consultants in lower skilled areas comprising loan servicing and support, customer and call center support, data entry, and other administrative roles. This segment serves clients in various industries, including financial and business services, healthcare, and manufacturing sectors. The company was founded in 1962 and is headquartered in Tampa, Florida.
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