Comparing Korn/Ferry International (NYSE:KFY) and ManpowerGroup (NYSE:MAN)

Korn/Ferry International (NYSE:KFY) and ManpowerGroup (NYSE:MAN) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Dividends

Korn/Ferry International pays an annual dividend of $1.92 per share and has a dividend yield of 2.8%. ManpowerGroup pays an annual dividend of $1.44 per share and has a dividend yield of 3.8%. Korn/Ferry International pays out 40.8% of its earnings in the form of a dividend. ManpowerGroup pays out -378.9% 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. ManpowerGroup is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Korn/Ferry International and ManpowerGroup”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Korn/Ferry International	$2.76 billion	1.29	$246.06 million	$4.71	14.41
ManpowerGroup	$17.54 billion	0.10	$145.10 million	($0.38)	-100.24

Korn/Ferry International has higher earnings, but lower revenue than ManpowerGroup. ManpowerGroup is trading at a lower price-to-earnings ratio than Korn/Ferry International, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Korn/Ferry International has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, ManpowerGroup has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Korn/Ferry International and ManpowerGroup, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Korn/Ferry International	0	1	2	0	2.67
ManpowerGroup	1	5	0	0	1.83

Korn/Ferry International presently has a consensus target price of $81.00, indicating a potential upside of 19.35%. ManpowerGroup has a consensus target price of $47.20, indicating a potential upside of 23.92%. Given ManpowerGroup’s higher probable upside, analysts plainly believe ManpowerGroup is more favorable than Korn/Ferry International.

Profitability

This table compares Korn/Ferry International and ManpowerGroup’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Korn/Ferry International	8.95%	14.55%	7.29%
ManpowerGroup	-0.09%	7.98%	2.02%

Insider and Institutional Ownership

98.8% of Korn/Ferry International shares are owned by institutional investors. Comparatively, 98.0% of ManpowerGroup shares are owned by institutional investors. 1.0% of Korn/Ferry International shares are owned by insiders. Comparatively, 3.1% of ManpowerGroup shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Korn/Ferry International beats ManpowerGroup on 12 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 ManpowerGroup

ManpowerGroup Inc. provides workforce solutions and services worldwide. The company offers recruitment services, including permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions under the Manpower and Experis brands. It also offers various assessment services; training and development services; career and talent management; and outsourcing services related to human resources functions primarily in the areas of large-scale recruiting and workforce-intensive initiatives. In addition, the company provides workforce consulting services; contingent staffing and permanent recruitment services; professional resourcing and project-based services; and recruitment process outsourcing, TAPFIN managed, and talent solutions. The company was incorporated in 1948 and is headquartered in Milwaukee, Wisconsin.