WallStSmart

Heidrick & Struggles International (HSII)vsKorn Ferry (KFY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Korn Ferry generates 146% more annual revenue ($2.96B vs $1.20B). KFY leads profitability with a 9.5% profit margin vs 3.1%. HSII appears more attractively valued with a PEG of 1.05. KFY earns a higher WallStSmart Score of 59/100 (C).

HSII

Buy

56

out of 100

Grade: C

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

KFY

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 6.0Value: 6.0Quality: 8.0
Piotroski: 5/9Altman Z: 2.50
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HSIISignificantly Overvalued (-22.1%)

Margin of Safety

-22.1%

Fair Value

$48.33

Current Price

$59.01

$10.68 premium

UndervaluedFair: $48.33Overvalued
KFYFair Value (-4.8%)

Margin of Safety

-4.8%

Fair Value

$59.58

Current Price

$75.18

$15.60 premium

UndervaluedFair: $59.58Overvalued

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

KFY3 strengths · Avg: 8.3/10
Debt/EquityHealth
0.309/10

Conservative balance sheet, low leverage

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

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

KFY1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-265.55M2/10

Negative free cash flow — burning cash

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 : KFY

The strongest argument for KFY centers on Debt/Equity, P/E Ratio, Price/Book. PEG of 1.20 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 : KFY

The primary concerns for KFY are Free Cash Flow.

Key Dynamics to Monitor

HSII profiles as a growth stock while KFY is a value play — different risk/reward profiles.

KFY carries more volatility with a beta of 1.26 — 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

KFY scores higher overall (59/100 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.

Korn Ferry

INDUSTRIALS · STAFFING & EMPLOYMENT SERVICES · USA

Korn Ferry, provides organizational consulting services worldwide. The company is headquartered in Los Angeles, California.

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