Kelly Services (NASDAQ:KELYA) versus Gartner (NYSE:IT) Financial Contrast

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

Institutional & Insider Ownership

91.5% of Gartner shares are held by institutional investors. Comparatively, 76.3% of Kelly Services shares are held by institutional investors. 2.6% of Gartner shares are held by company insiders. Comparatively, 5.4% of Kelly Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gartner	11.99%	525.46%	13.45%
Kelly Services	-6.73%	2.69%	1.19%

Volatility and Risk

Gartner has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Kelly Services has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Earnings and Valuation

This table compares Gartner and Kelly Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gartner	$6.46 billion	2.30	$729.23 million	$11.15	21.09
Kelly Services	$4.06 billion	0.14	-$254.10 million	($7.81)	-2.16

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Gartner and Kelly Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gartner	2	7	1	0	1.90
Kelly Services	1	1	1	0	2.00

Gartner currently has a consensus price target of $198.50, indicating a potential downside of 15.60%. Kelly Services has a consensus price target of $20.00, indicating a potential upside of 18.76%. Given Kelly Services’ stronger consensus rating and higher probable upside, analysts plainly believe Kelly Services is more favorable than Gartner.

Summary

Gartner beats Kelly Services on 10 of the 13 factors compared between the two stocks.

About Gartner

Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

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.