Kelly Services (NASDAQ:KELYA) versus KANZHUN (NASDAQ:BZ) Head-To-Head Analysis

KANZHUN (NASDAQ:BZ) and Kelly Services (NASDAQ:KELYA) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Insider & Institutional Ownership

60.7% of KANZHUN shares are held by institutional investors. Comparatively, 76.3% of Kelly Services shares are held by institutional investors. 5.4% of Kelly Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KANZHUN	53.16%	15.03%	12.02%
Kelly Services	-6.73%	2.69%	1.19%

Analyst Recommendations

This is a summary of current ratings for KANZHUN and Kelly Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KANZHUN	0	3	2	0	2.40
Kelly Services	1	1	1	0	2.00

KANZHUN presently has a consensus target price of $19.33, suggesting a potential upside of 20.38%. Kelly Services has a consensus target price of $20.00, suggesting a potential upside of 21.43%. Given Kelly Services’ higher probable upside, analysts clearly believe Kelly Services is more favorable than KANZHUN.

Volatility & Risk

KANZHUN has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Kelly Services has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Dividends

KANZHUN pays an annual dividend of $0.51 per share and has a dividend yield of 3.2%. Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. KANZHUN pays out 35.9% of its earnings in the form of a dividend. Kelly Services pays out -3.8% 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.

Valuation and Earnings

This table compares KANZHUN and Kelly Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KANZHUN	$8.71 billion	0.76	$391.15 million	$1.42	11.31
Kelly Services	$4.06 billion	0.14	-$254.10 million	($7.81)	-2.11

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

Summary

KANZHUN beats Kelly Services on 11 of the 16 factors compared between the two stocks.

About KANZHUN

Kanzhun Limited, together with its subsidiaries, provides online recruitment services in the People's Republic of China. The company offers its recruitment services through a mobile app under the BOSS Zhipin brand name. Its services allow enterprise customers to access and interact with job seekers and manage their recruitment process. The company also provides management consultancy and technical services. Kanzhun Limited was founded in 2013 and is headquartered in Beijing, the People's Republic of China.

About Kelly Services

Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries. The company operates through five segments: Professional & Industrial; Science, Engineering & Technology; Education; Outsourcing & Consulting; and International. The Professional & Industrial segment delivers staffing, outcome-based, and permanent placement services providing administrative, accounting, and finance; light industrial; contact center staffing; and other workforce solutions. The Science, Engineering & Technology segment offers staffing, outcome-based, and permanent placement services in the areas of science and clinical research, engineering, technology, and telecommunications specialties. The Education segment provides staffing, permanent placement, and executive search services to pre-K-12 school districts and education organizations. The Outsourcing & Consulting segment offers managed service provider, recruitment process outsourcing, payroll process outsourcing, and executive coaching programs to customers on a global basis that includes its RocketPower brand. The International segment provides staffing, recruitment process outsourcing, and permanent placement services. The company serves customers in the United States, Canada, Mexico, Puerto Rico, France, Switzerland, Portugal, Russia, Italy, rest of Europe, and the Asia-Pacific region. Kelly Services, Inc. was founded in 1946 and is headquartered in Troy, Michigan.