Critical Survey: On Assignment (ASGN) and Kelly Services (KELYA)

On Assignment (NYSE: ASGN) and Kelly Services (NASDAQ:KELYA) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares On Assignment and Kelly Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
On Assignment 6.12% 17.99% 9.63%
Kelly Services 1.62% 7.57% 3.68%

Analyst Ratings

This is a summary of recent recommendations for On Assignment and Kelly Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
On Assignment 0 1 6 0 2.86
Kelly Services 0 0 0 0 N/A

On Assignment currently has a consensus target price of $79.83, suggesting a potential downside of 4.40%. Given On Assignment’s higher probable upside, research analysts plainly believe On Assignment is more favorable than Kelly Services.

Volatility & Risk

On Assignment has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500. Comparatively, Kelly Services has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Valuation & Earnings

This table compares On Assignment and Kelly Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
On Assignment $2.63 billion 1.66 $157.67 million $3.05 27.38
Kelly Services $5.37 billion 0.16 $71.59 million $2.20 10.10

On Assignment has higher earnings, but lower revenue than Kelly Services. Kelly Services is trading at a lower price-to-earnings ratio than On Assignment, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

93.3% of On Assignment shares are held by institutional investors. Comparatively, 69.4% of Kelly Services shares are held by institutional investors. 3.9% of On Assignment shares are held by company insiders. Comparatively, 12.1% of Kelly Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. On Assignment does not pay a dividend. Kelly Services pays out 13.6% of its earnings in the form of a dividend.

Summary

On Assignment beats Kelly Services on 12 of the 15 factors compared between the two stocks.

On Assignment Company Profile

ASGN Incorporated provides IT and professional services in the technology, digital, creative, healthcare technology, engineering, life sciences, and government sectors in the United States, Europe, and Canada. The company's Apex segment offers technical, digital, and creative and scientific professionals for contract, contract-to-hire, and permanent placement positions to Fortune 1000 and mid-market clients; IT staffing and consulting services comprising IT infrastructure, application development, project management, and healthcare IT professionals; and creative, marketing, advertising, and digital professionals. It also provides scientific, engineering, and clinical research staffing and services for temporary and permanent assignments, such as chemists, clinical research associates, clinical lab assistants, engineers, biologists, biochemists, microbiologists, molecular biologists, biostatisticians, drug safety specialists, SAS programmers, medical writers, food scientists, regulatory affairs specialists, lab assistants, and other skilled professionals. This segment serves companies from various industries, as well as advertising agencies and company marketing departments. Its Oxford segment recruits and delivers experienced IT, engineering, and regulatory and compliance consultants to clients for temporary assignments and project engagements; provides permanent placements in technology, engineering, sales, executive, financial, accounting, scientific, legal, and operations positions; and offers locally-based contract and permanent life science professionals to clients with research and development projects. The company's ECS segment delivers solutions in cloud, cybersecurity, software development, IT modernization, and science and engineering. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018. The company was founded in 1985 and is headquartered in Calabasas, California.

Kelly Services Company Profile

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.

Receive News & Ratings for On Assignment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for On Assignment and related companies with MarketBeat.com's FREE daily email newsletter.




Leave a Reply