Comparing Kelly Services (KELYB) and ASGN (ASGN)

Kelly Services (NASDAQ:KELYB) and ASGN (NYSE:ASGN) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Kelly Services and ASGN, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kelly Services 0 0 0 0 N/A
ASGN 0 2 6 0 2.75

ASGN has a consensus price target of $80.57, suggesting a potential upside of 18.57%. Given ASGN’s higher possible upside, analysts plainly believe ASGN is more favorable than Kelly Services.

Profitability

This table compares Kelly Services and ASGN’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kelly Services 1.17% 7.45% 3.66%
ASGN 5.69% 20.29% 9.51%

Dividends

Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.3%. ASGN does not pay a dividend. Kelly Services has raised its dividend for 2 consecutive years.

Volatility and Risk

Kelly Services has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, ASGN has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.

Earnings & Valuation

This table compares Kelly Services and ASGN’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kelly Services $5.37 billion 0.16 $71.60 million N/A N/A
ASGN $2.63 billion 1.36 $157.67 million $3.05 22.28

ASGN has lower revenue, but higher earnings than Kelly Services.

Insider and Institutional Ownership

0.0% of Kelly Services shares are owned by institutional investors. Comparatively, 90.5% of ASGN shares are owned by institutional investors. 93.1% of Kelly Services shares are owned by company insiders. Comparatively, 3.9% of ASGN shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

ASGN beats Kelly Services on 10 of the 14 factors compared between the two stocks.

About Kelly Services

Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries worldwide. The company operates through three segments: Americas Staffing, Global Talent Solutions (GTS), and International Staffing. It provides trained employees for data entry, clerical, and administrative support roles across various industries; schools with instructional and non-instructional employees; support staff for seminars, sales, and trade shows; assemblers, quality control inspectors, and technicians for electronic assembly; maintenance workers, material handlers, and assemblers for light industrial works; scientists, and scientific and clinical research workforce solutions; engineering professionals across various disciplines, including aeronautical, chemical, civil/structural, electrical/instrumentation, environmental, industrial, mechanical, petroleum, pharmaceutical, quality, and telecommunications. The company also provides IT specialists across various disciplines; creative talent in the spectrum of creative services positions; corporate finance departments, accounting firms, and financial institutions with various levels of financial professionals; and legal professionals, including attorneys, paralegals, contract administrators, compliance specialists, and legal administrators. In addition, it provides chefs, porters, and hospitality representatives; and manual workers and semi-skilled professionals in various trade, non-trade, and operational positions. Further, the company provides centrally delivered staffing for large accounts; contingent workforce outsourcing, recruitment process outsourcing, business process outsourcing, and payroll process outsourcing services; contact center staffing solutions; and legal managed services, as well as executive placement, career transition/outplacement, and talent advisory services. Kelly Services, Inc. was founded in 1946 and is headquartered in Troy, Michigan.

About ASGN

ASGN Incorporated provides IT and professional services in the technology, creative/digital, engineering, and life sciences fields across commercial and government sectors in the United State and internationally. The company operates through Apex, Oxford, and ECS segments. The Apex segment offers technical, scientific, digital, and creative services and solutions to Fortune 1000 and mid-market clients. The Oxford segment provides technical, digital, engineering, and life sciences services and solutions in various skill and geographic markets. The ECS Segment delivers advanced solutions in cloud, cybersecurity, artificial intelligence, machine learning, software development, IT modernization, and science and engineering, as well as focused on Federal Government activities. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018. ASGN Incorporated was founded in 1985 and is headquartered in Calabasas, California.

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