Stericycle (NASDAQ: SRCL) and Kelly Services (NASDAQ:KELYA) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.
Insider and Institutional Ownership
94.3% of Stericycle shares are held by institutional investors. Comparatively, 68.1% of Kelly Services shares are held by institutional investors. 3.5% of Stericycle shares are held by company insiders. Comparatively, 13.3% 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 company is poised for long-term growth.
This table compares Stericycle and Kelly Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for Stericycle and Kelly Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stericycle presently has a consensus target price of $68.88, suggesting a potential upside of 10.57%. Given Stericycle’s stronger consensus rating and higher possible upside, analysts plainly believe Stericycle is more favorable than Kelly Services.
Risk & Volatility
Stericycle has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Kelly Services has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.0%. Stericycle does not pay a dividend. Kelly Services pays out 16.6% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Stericycle and Kelly Services’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stericycle||$3.58 billion||1.49||$42.40 million||$0.26||239.59|
|Kelly Services||$5.37 billion||0.22||$71.59 million||$1.81||16.72|
Kelly Services has higher revenue and earnings than Stericycle. Kelly Services is trading at a lower price-to-earnings ratio than Stericycle, indicating that it is currently the more affordable of the two stocks.
Stericycle beats Kelly Services on 9 of the 16 factors compared between the two stocks.
Stericycle Company Profile
Stericycle, Inc. is a business-to-business services provider. The Company focuses on regulated and compliance solutions for healthcare, retail, and commercial businesses. The Company’s segments include Domestic and Canada Regulated Waste and Compliance Services (RCS), Domestic Communication and Related Services (CRS), International RCS and All other. The Domestic and Canada RCS and International RCS segments include medical waste disposal, pharmaceutical waste disposal, hazardous waste management, sustainability solutions for expired or unused inventory, secure information destruction of documents and e-media, training and consulting through its Steri-Safe and Clinical Services programs, and other regulatory compliance services. The Domestic CRS segment consists of inbound/outbound communication, automated patient reminders, online scheduling, notifications, product retrievals, product returns and quality audits.
Kelly Services Company Profile
Kelly Services, Inc. is a workforce solutions provider, which is engaged in offering a range of specialty services. The Company provides workforce solutions in three regions: the Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific (APAC). The Company’s segments are Americas Commercial, Americas Professional and Technical (Americas PT), EMEA Commercial, EMEA Professional and Technical (EMEA PT), and Outsourcing and Consulting Group (OCG). The Americas Commercial segment includes Office, Contact Center, Education, Marketing and Electronic Assembly. The Americas PT segment includes a range of specialty staffing services. The EMEA Commercial segment provides a range of staffing services, including Office, Contact Center and its temporary-to-hire service. The EMEA PT segment provides Engineering, Finance and Accounting services. The OCG segment delivers talent management solutions across multiple regions, skill sets and a spectrum of talent categories.
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