Korn/Ferry International (NYSE: KFY) and DHI Group (NYSE:DHX) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
This table compares Korn/Ferry International and DHI Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
87.9% of Korn/Ferry International shares are held by institutional investors. Comparatively, 82.0% of DHI Group shares are held by institutional investors. 1.2% of Korn/Ferry International shares are held by company insiders. Comparatively, 7.2% of DHI Group shares are held 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.
Volatility & Risk
Korn/Ferry International has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, DHI Group has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Korn/Ferry International and DHI Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Korn/Ferry International currently has a consensus target price of $34.50, indicating a potential upside of 8.18%. DHI Group has a consensus target price of $6.25, indicating a potential upside of 212.50%. Given DHI Group’s higher probable upside, analysts plainly believe DHI Group is more favorable than Korn/Ferry International.
Earnings & Valuation
This table compares Korn/Ferry International and DHI Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Korn/Ferry International||$1.57 billion||1.16||$183.70 million||$1.47||21.69|
|DHI Group||$215.60 million||0.47||$39.50 million||($0.17)||-11.76|
Korn/Ferry International has higher revenue and earnings than DHI Group. DHI Group 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.
Korn/Ferry International pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. DHI Group does not pay a dividend. Korn/Ferry International pays out 27.2% of its earnings in the form of a dividend.
Korn/Ferry International beats DHI Group on 12 of the 16 factors compared between the two stocks.
About Korn/Ferry International
Korn/Ferry International (Korn Ferry) is a people and organizational advisory company. The Company and its subsidiaries are engaged in the provision of talent management solutions, including executive search on a retained basis, recruitment for non-executive professionals, recruitment process outsourcing, and leadership and talent consulting services. Its segments include Executive Search, Hay Group and Futurestep. The Executive Search segment focuses on recruiting Board of Director and C-level positions, in addition to research-based interviewing and onboarding solutions, for clients predominantly in the consumer, financial services, industrial, life sciences/healthcare and technology industries. The Hay Group segment assists clients with ongoing assessment, compensation and development of their senior executives and management teams. The Futurestep segment provides talent acquisition solutions and services, such as project recruitment, individual professional search and consulting.
About DHI Group
DHI Group, Inc. provides data, insights and employment connections through specialized services for professional communities, including technology and security clearance, financial services, energy, healthcare and hospitality. The Company’s segments are Tech & Clearance, which includes Dice, Dice Europe and ClearanceJobs; Global Industry Group, which includes eFinancialCareers, Rigzone, Hcareers and BioSpace; Healthcare, which includes Health eCareers, and Corporate & Other, which includes Slashdot Media and Brightmatter. It sells recruitment packages, which allow customers to post jobs and source candidates through its resume databases and, in case of Dice, Dice Europe and eFinancialCareers, to utilize its Open Web search service. Its products and services include resume databases, job postings, open Web, and content and data. Its brands include Dice, Dice Europe, ClearanceJobs, Targeted Job Fairs, eFinancialCareers, Rigzone, BioSpace, Hcareers and Health eCareers.
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