GEE Group (NYSE:JOB) and Korn Ferry (NYSE:KFY) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
5.5% of GEE Group shares are held by institutional investors. Comparatively, 88.4% of Korn Ferry shares are held by institutional investors. 18.9% of GEE Group shares are held by insiders. Comparatively, 2.1% of Korn Ferry shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares GEE Group and Korn Ferry’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GEE Group | -3.91% | -105.16% | -12.08% |
| Korn Ferry | 1.70% | 8.69% | 4.09% |
Valuation & Earnings
This table compares GEE Group and Korn Ferry’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GEE Group | $151.67 million | 0.12 | -$17.76 million | N/A | N/A |
| Korn Ferry | $1.98 billion | 0.81 | $104.95 million | $2.91 | 10.03 |
Korn Ferry has higher revenue and earnings than GEE Group.
Analyst Ratings
This is a summary of recent ratings and target prices for GEE Group and Korn Ferry, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GEE Group | 0 | 0 | 0 | 0 | N/A |
| Korn Ferry | 0 | 2 | 2 | 0 | 2.50 |
Korn Ferry has a consensus price target of $37.20, indicating a potential upside of 27.48%. Given Korn Ferry’s higher possible upside, analysts clearly believe Korn Ferry is more favorable than GEE Group.
Volatility & Risk
GEE Group has a beta of 2.99, indicating that its share price is 199% more volatile than the S&P 500. Comparatively, Korn Ferry has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.
Summary
Korn Ferry beats GEE Group on 9 of the 11 factors compared between the two stocks.
GEE Group Company Profile
GEE Group, Inc. provides permanent and temporary professional, industrial, and physician assistant staffing and placement services in the United States. It operates through two segments, Industrial Staffing Services and Professional Staffing Services. The company offers professional placement services comprising placement of information technology, engineering, medical, and accounting professionals on regular placement basis or a temporary contract basis; and weekly temporary staffing services for light industrial clients. The company provides medical data entry assistants, who offer electronic medical record services for emergency departments, specialty physician practices, and clinics. It offers professional and commercial staffing services under the names of Access Data Consulting, Agile Resources, Ashley Ellis, General Employment, Omni-One, Paladin Consulting, and Triad; medical staffing services under the Scribe Solutions brand; and contract and direct hire professional staffing services under the Accounting Now, SNI Technology, Legal Now, SNI Financial, Staffing Now, SNI Energy, and SNI Certes brands. The company was formerly known as General Employment Enterprises, Inc. and changed its name to GEE Group, Inc. in July 2016. GEE Group, Inc. was founded in 1893 and is headquartered in Jacksonville, Florida.
Korn Ferry Company Profile
Korn Ferry, together with its subsidiaries, provides talent management solutions worldwide. It operates through three segments: Executive Search, Hay Group, and Futurestep. The company provides executive search services to fill executive-level positions, such as board directors, chief executive officers, chief financial officers, chief operating officers, chief information officers, chief human resource officers, and other senior executive officers for clients in the consumer, financial services, industrial, life sciences/healthcare provider, technology, and educational/not-for-profit market sectors. It also offers talent strategy, succession management, and leadership development, as well as rewards, motivation, and engagement solutions to assist clients with their ongoing assessment, compensation, and development of senior executives and management teams. In addition, the company provides various talent acquisition process outsourcing, project recruitment, professional search, talent consulting and employer branding, and individual professional search and consulting services. 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.
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