Analyzing Cross Country Healthcare (CCRN) and Kelly Services, Inc. Class A (KELYA)

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Cross Country Healthcare (NASDAQ: CCRN) and Kelly Services, Inc. Class A (NASDAQ:KELYA) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Valuation & Earnings

This table compares Cross Country Healthcare and Kelly Services, Inc. Class A’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cross Country Healthcare $865.05 million 0.53 $37.51 million $0.61 20.52
Kelly Services, Inc. Class A $5.37 billion 0.17 $71.59 million $2.20 10.63

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cross Country Healthcare and Kelly Services, Inc. Class A, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cross Country Healthcare 0 5 3 0 2.38
Kelly Services, Inc. Class A 0 0 1 0 3.00

Cross Country Healthcare presently has a consensus price target of $13.86, suggesting a potential upside of 10.68%. Given Cross Country Healthcare’s higher possible upside, research analysts plainly believe Cross Country Healthcare is more favorable than Kelly Services, Inc. Class A.

Profitability

This table compares Cross Country Healthcare and Kelly Services, Inc. Class A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cross Country Healthcare 4.74% 9.99% 5.00%
Kelly Services, Inc. Class A 1.62% 7.57% 3.68%

Insider & Institutional Ownership

95.7% of Cross Country Healthcare shares are held by institutional investors. Comparatively, 66.9% of Kelly Services, Inc. Class A shares are held by institutional investors. 3.4% of Cross Country Healthcare shares are held by insiders. Comparatively, 12.1% of Kelly Services, Inc. Class A shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Cross Country Healthcare has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Kelly Services, Inc. Class A has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Dividends

Kelly Services, Inc. Class A pays an annual dividend of $0.30 per share and has a dividend yield of 1.3%. Cross Country Healthcare does not pay a dividend. Kelly Services, Inc. Class A pays out 13.6% of its earnings in the form of a dividend.

Summary

Cross Country Healthcare beats Kelly Services, Inc. Class A on 9 of the 16 factors compared between the two stocks.

Cross Country Healthcare Company Profile

Cross Country Healthcare, Inc. provides healthcare staffing, recruiting, and workforce solutions in the United States. The company operates in three segments: Nurse and Allied Staffing, Physician Staffing, and Other Human Capital Management Services. The Nurse and Allied Staffing segment offers traditional staffing, including temporary and permanent placement of travel nurses and allied professionals, branch-based local nurses, and allied staffing; short-term staffing of registered nurses, licensed practical nurses, certified nurse assistants, practitioners, pharmacists, and other allied professionals on per diem and short-term assignments; and travel allied professionals on long-term contract assignments. It serves public and private acute care hospitals, government-owned facilities, public and charter schools, outpatient clinics, ambulatory care facilities, physician practice groups, retailers, and other healthcare providers under the Cross Country Staffing, Mediscan, and DirectEd brands. The Physician Staffing segment provides physicians in various specialties, certified registered nurse anesthetists, nurse practitioners, and physician assistants under the Medical Doctor Associates brand as independent contractors on temporary assignments at various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The Other Human Capital Management Services segment offers retained and contingent search services for physicians, healthcare executives, nurses, advanced practice, and allied health professionals. Cross Country Healthcare, Inc. was founded in 1996 and is headquartered in Boca Raton, Florida.

Kelly Services, Inc. Class A Company Profile

Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries worldwide. The company operates through three segments: Americas Staffing, Global Talent Solutions (GTS), and International Staffing. It provides trained employees for data entry, clerical, and administrative support roles across various industries; schools with instructional and non-instructional employees; support staff for seminars, sales, and trade shows; assemblers, quality control inspectors, and technicians for electronic assembly; maintenance workers, material handlers, and assemblers for light industrial works; scientists, and scientific and clinical research workforce solutions; engineering professionals across various disciplines, including aeronautical, chemical, civil/structural, electrical/instrumentation, environmental, industrial, mechanical, petroleum, pharmaceutical, quality, and telecommunications. The company also provides IT specialists across various disciplines; creative talent in the spectrum of creative services positions; corporate finance departments, accounting firms, and financial institutions with various levels of financial professionals; and legal professionals, including attorneys, paralegals, contract administrators, compliance specialists, and legal administrators. In addition, it provides chefs, porters, and hospitality representatives; and manual workers and semi-skilled professionals in various trade, non-trade, and operational positions. Further, the company provides centrally delivered staffing for large accounts; contingent workforce outsourcing, recruitment process outsourcing, business process outsourcing, and payroll process outsourcing services; contact center staffing solutions; and legal managed services, as well as executive placement, career transition/outplacement, and talent advisory services. Kelly Services, Inc. was founded in 1946 and is headquartered in Troy, Michigan.

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