WallStSmart

Heidrick & Struggles International (HSII)vsKelly Services A Inc (KELYA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kelly Services A Inc generates 244% more annual revenue ($4.13B vs $1.20B). HSII leads profitability with a 3.1% profit margin vs -6.4%. KELYA appears more attractively valued with a PEG of 0.96. KELYA earns a higher WallStSmart Score of 57/100 (C).

HSII

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 4.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.04

KELYA

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 3.0Value: 7.0Quality: 8.0
Piotroski: 4/9Altman Z: 3.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HSIISignificantly Overvalued (-22.4%)

Margin of Safety

-22.4%

Fair Value

$48.23

Current Price

$59.01

$10.78 premium

UndervaluedFair: $48.23Overvalued
KELYAUndervalued (+19.3%)

Margin of Safety

+19.3%

Fair Value

$12.28

Current Price

$11.77

$0.51 discount

UndervaluedFair: $12.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSII3 strengths · Avg: 8.3/10
Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.9%8/10

15.9% revenue growth

KELYA5 strengths · Avg: 9.4/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
333.3%10/10

Earnings expanding 333.3% YoY

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.968/10

Growing faster than its price suggests

Areas to Watch

HSII4 concerns · Avg: 3.3/10
P/E RatioValuation
34.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.23B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

KELYA4 concerns · Avg: 2.5/10
Market CapQuality
$408.06M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.4%3/10

Operating margin of 0.4%

Return on EquityProfitability
-27.4%2/10

ROE of -27.4% — below average capital efficiency

Revenue GrowthGrowth
-10.7%2/10

Revenue declined 10.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : HSII

The strongest argument for HSII centers on Debt/Equity, Price/Book, Revenue Growth. Revenue growth of 15.9% demonstrates continued momentum. PEG of 1.05 suggests the stock is reasonably priced for its growth.

Bull Case : KELYA

The strongest argument for KELYA centers on Price/Book, EPS Growth, Altman Z-Score. PEG of 0.96 suggests the stock is reasonably priced for its growth.

Bear Case : HSII

The primary concerns for HSII are P/E Ratio, Market Cap, Return on Equity. Thin 3.1% margins leave little buffer for downturns.

Bear Case : KELYA

The primary concerns for KELYA are Market Cap, Operating Margin, Return on Equity.

Key Dynamics to Monitor

HSII profiles as a growth stock while KELYA is a turnaround play — different risk/reward profiles.

HSII carries more volatility with a beta of 1.08 — expect wider price swings.

HSII is growing revenue faster at 15.9% — sustainability is the question.

HSII generates stronger free cash flow (129M), providing more financial flexibility.

Bottom Line

KELYA scores higher overall (57/100 vs 56/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Heidrick & Struggles International

INDUSTRIALS · STAFFING & EMPLOYMENT SERVICES · USA

Heidrick & Struggles International, Inc., provides executive search and consulting services to companies and business leaders worldwide. The company is headquartered in Chicago, Illinois.

Kelly Services A Inc

INDUSTRIALS · STAFFING & EMPLOYMENT SERVICES · USA

Kelly Services, Inc. provides workforce solutions to various industries. The company is headquartered in Troy, Michigan.

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