Analyzing Korn/Ferry International (KFY) and Its Peers

Korn/Ferry International (NYSE:KFY) is one of 204 public companies in the “Professional Services” industry, but how does it compare to its peers? We will compare Korn/Ferry International to similar companies based on the strength of its earnings, profitability, dividends, risk, analyst recommendations, institutional ownership and valuation.

Risk & Volatility

Korn/Ferry International has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Korn/Ferry International’s peers have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Profitability

This table compares Korn/Ferry International and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Korn/Ferry International	9.36%	14.43%	7.36%
Korn/Ferry International Competitors	0.35%	36.04%	4.43%

Analyst Ratings

This is a breakdown of recent recommendations for Korn/Ferry International and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Korn/Ferry International	1	1	5	0	2.57
Korn/Ferry International Competitors	1620	6511	9186	435	2.48

Korn/Ferry International currently has a consensus price target of $83.00, indicating a potential upside of 9.74%. As a group, “Professional Services” companies have a potential upside of 26.94%. Given Korn/Ferry International’s peers higher possible upside, analysts clearly believe Korn/Ferry International has less favorable growth aspects than its peers.

Institutional & Insider Ownership

98.8% of Korn/Ferry International shares are held by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are held by institutional investors. 1.0% of Korn/Ferry International shares are held by insiders. Comparatively, 17.1% of shares of all “Professional Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Korn/Ferry International pays an annual dividend of $2.20 per share and has a dividend yield of 2.9%. Korn/Ferry International pays out 41.5% of its earnings in the form of a dividend. As a group, “Professional Services” companies pay a dividend yield of 2.4% and pay out -166.6% of their earnings in the form of a dividend. Korn/Ferry International has raised its dividend for 5 consecutive years.

Earnings & Valuation

This table compares Korn/Ferry International and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Korn/Ferry International	$2.94 billion	$277.43 million	14.27
Korn/Ferry International Competitors	$3.29 billion	$228.40 million	32.41

Korn/Ferry International’s peers have higher revenue, but lower earnings than Korn/Ferry International. Korn/Ferry International is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Korn/Ferry International beats its peers on 8 of the 15 factors compared.

Korn/Ferry International Company Profile

Korn Ferry is a global organizational consulting firm that helps companies align their business strategies with their talent and organizational capabilities. Founded in 1969 as an executive-search firm, it has expanded into a broader provider of talent and leadership services. The company’s offerings include executive and professional search, recruitment process outsourcing, leadership assessment and development, succession planning, and organizational and compensation consulting. It also provides digital tools and advisory services to support workforce planning and talent management.