Head-To-Head Survey: Kforce (NASDAQ:KFRC) & KBR (NYSE:KBR)

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

Analyst Ratings

This is a summary of current ratings and target prices for KBR and Kforce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KBR	0	5	3	0	2.38
Kforce	0	3	2	0	2.40

KBR currently has a consensus price target of $45.00, indicating a potential upside of 23.66%. Kforce has a consensus price target of $60.67, indicating a potential upside of 18.75%. Given KBR’s higher probable upside, equities analysts clearly believe KBR is more favorable than Kforce.

Volatility & Risk

KBR has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Kforce has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Dividends

KBR pays an annual dividend of $0.66 per share and has a dividend yield of 1.8%. Kforce pays an annual dividend of $1.60 per share and has a dividend yield of 3.1%. KBR pays out 19.9% of its earnings in the form of a dividend. Kforce pays out 75.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KBR has increased its dividend for 6 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KBR	5.49%	32.55%	7.62%
Kforce	3.59%	30.34%	13.76%

Institutional and Insider Ownership

97.0% of KBR shares are owned by institutional investors. Comparatively, 92.8% of Kforce shares are owned by institutional investors. 1.1% of KBR shares are owned by insiders. Comparatively, 7.3% of Kforce shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares KBR and Kforce”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KBR	$7.72 billion	0.59	$415.00 million	$3.32	10.96
Kforce	$1.34 billion	0.68	$50.41 million	$2.12	24.10

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

Summary

KBR beats Kforce on 10 of the 17 factors compared between the two stocks.

About KBR

KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. It operates through Government Solutions and Sustainable Technology Solutions segments. The Government Solutions segment offers life-cycle support solutions to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies in the United States, the United Kingdom, and Australia. Its services cover research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, systems integration and program management, global supply chain management, and operations readiness and support, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services. This segment also provides various professional advisory services to the defense, renewable energy, and critical infrastructure sectors. The Sustainable Technology Solutions segment operates portfolio of various proprietary process technologies for ammonia/syngas, chemical/petrochemicals, clean refining, and circular process/circular economy solutions. This segment also provides synergistic services, including advisory and consulting focused on broad-based energy transition and net-zero carbon emission solutions; high-end engineering, design and program management centered around decarbonization, energy efficiency, environmental impact and asset optimization; and digitally-enabled operating and monitoring solutions. KBR, Inc. was founded in 1901 and is headquartered in Houston, Texas.

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.