Head to Head Analysis: Kelly Services (KELYB) vs. Trueblue (TBI)

Kelly Services (NASDAQ:KELYB) and Trueblue (NYSE:TBI) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Dividends

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

Valuation and Earnings

This table compares Kelly Services and Trueblue’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kelly Services $5.37 billion 0.17 $71.59 million N/A N/A
Trueblue $2.51 billion 0.40 $55.45 million $1.74 14.31

Kelly Services has higher revenue and earnings than Trueblue.

Institutional & Insider Ownership

0.0% of Kelly Services shares are owned by institutional investors. Comparatively, 92.6% of Trueblue shares are owned by institutional investors. 93.1% of Kelly Services shares are owned by company insiders. Comparatively, 2.0% of Trueblue shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Kelly Services has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Trueblue has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Kelly Services 0.99% 7.62% 3.72%
Trueblue 2.57% 14.66% 7.38%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kelly Services 0 0 0 0 N/A
Trueblue 0 3 0 0 2.00

Trueblue has a consensus price target of $27.33, indicating a potential upside of 9.77%. Given Trueblue’s higher possible upside, analysts clearly believe Trueblue is more favorable than Kelly Services.

Summary

Trueblue beats Kelly Services on 8 of the 13 factors compared between the two stocks.

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.

Trueblue Company Profile

TrueBlue, Inc. provides contingent staffing, recruitment process outsourcing, and contingent staffing management services in the United States, Canada, and Puerto Rico. It operates through three segments: PeopleReady, PeopleManagement, and PeopleScout. The PeopleReady segment offers a range of staffing solutions for blue-collar, contingent on-demand, and skilled labor in construction, manufacturing and logistics, warehousing and distribution, waste and recycling, hospitality, general labor, and other industries under the Labor Ready, CLP Resources, and Spartan Staffing brands. The PeopleManagement segment provides contingent labor and outsourced industrial workforce solutions. It offers outsourced recruitment and on-premise management services, temporary skilled mechanics and technicians for the aviation and transportation industries, and temporary and dedicated drivers for the transportation and distribution industries under Staff Management, SIMOS Insourcing Solutions, PlaneTechs, and Centerline Drivers brands. The PeopleScout segment offers permanent employee recruitment process outsourcing services; and manages customers' contingent labor programs comprising vendor selection, performance management, compliance monitoring, and risk management. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.

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