Kforce (NASDAQ:KFRC) vs. Clarivate (NYSE:CLVT) Head to Head Contrast

Kforce (NASDAQ:KFRC) and Clarivate (NYSE:CLVT) are both small-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares Kforce and Clarivate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kforce	3.59%	30.34%	13.76%
Clarivate	-17.02%	9.84%	4.29%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Kforce and Clarivate, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kforce	0	3	2	0	2.40
Clarivate	3	5	1	0	1.78

Kforce currently has a consensus target price of $63.00, suggesting a potential upside of 14.70%. Clarivate has a consensus target price of $2.65, suggesting a potential upside of 13.01%. Given Kforce’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Kforce is more favorable than Clarivate.

Valuation and Earnings

This table compares Kforce and Clarivate”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kforce	$1.37 billion	0.72	$50.41 million	$2.39	22.98
Clarivate	$2.38 billion	0.63	-$201.10 million	($0.61)	-3.84

Kforce has higher earnings, but lower revenue than Clarivate. Clarivate is trading at a lower price-to-earnings ratio than Kforce, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

92.8% of Kforce shares are owned by institutional investors. Comparatively, 85.7% of Clarivate shares are owned by institutional investors. 7.3% of Kforce shares are owned by insiders. Comparatively, 22.9% of Clarivate shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Kforce has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Clarivate has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Summary

Kforce beats Clarivate on 11 of the 14 factors compared between the two stocks.

About Kforce

Kforce Inc. provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security. This segment serves clients in various industries comprising financial and business services, communications, insurance, retail, and technology industries. The FA businesses segment offers talent solutions to its clients in areas, including financial planning and analysis, business intelligence analysis, general accounting, transactional accounting, business and cost analysis, and taxation and treasury. It also provides consultants in lower skilled areas comprising loan servicing and support, customer and call center support, data entry, and other administrative roles. This segment serves clients in various industries, including financial and business services, healthcare, and manufacturing sectors. The company was founded in 1962 and is headquartered in Tampa, Florida.

About Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.