Korn/Ferry International (KFY) & Towers Watson & Co (TW) Critical Contrast

Korn/Ferry International (NYSE: KFY) and Towers Watson & Co (NASDAQ:TW) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Korn/Ferry International and Towers Watson & Co, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Korn/Ferry International 0 3 2 0 2.40
Towers Watson & Co 0 0 0 0 N/A

Korn/Ferry International currently has a consensus price target of $32.00, indicating a potential downside of 1.08%. Given Korn/Ferry International’s higher probable upside, research analysts clearly believe Korn/Ferry International is more favorable than Towers Watson & Co.

Insider & Institutional Ownership

90.1% of Korn/Ferry International shares are held by institutional investors. 1.2% of Korn/Ferry International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Korn/Ferry International pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Towers Watson & Co does not pay a dividend. Korn/Ferry International pays out 27.2% of its earnings in the form of a dividend.

Profitability

This table compares Korn/Ferry International and Towers Watson & Co’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Korn/Ferry International 5.19% 12.14% 6.49%
Towers Watson & Co 13.78% 16.74% 9.29%

Valuation & Earnings

This table compares Korn/Ferry International and Towers Watson & Co’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Korn/Ferry International $1.57 billion 1.17 $183.70 million $1.47 22.01
Towers Watson & Co N/A N/A N/A N/A N/A

Korn/Ferry International has higher revenue and earnings than Towers Watson & Co.

Summary

Korn/Ferry International beats Towers Watson & Co on 6 of the 10 factors compared between the two stocks.

Korn/Ferry International Company Profile

Korn/Ferry International (Korn Ferry) is a people and organizational advisory company. The Company and its subsidiaries are engaged in the provision of talent management solutions, including executive search on a retained basis, recruitment for non-executive professionals, recruitment process outsourcing, and leadership and talent consulting services. Its segments include Executive Search, Hay Group and Futurestep. The Executive Search segment focuses on recruiting Board of Director and C-level positions, in addition to research-based interviewing and onboarding solutions, for clients predominantly in the consumer, financial services, industrial, life sciences/healthcare and technology industries. The Hay Group segment assists clients with ongoing assessment, compensation and development of their senior executives and management teams. The Futurestep segment provides talent acquisition solutions and services, such as project recruitment, individual professional search and consulting.

Towers Watson & Co Company Profile

Towers Watson & Co. is a global professional services company. The Company offers consulting, technology and solutions in the areas of benefits, talent management, rewards and risk and capital management. The Company provides clients with services across four business segments: Benefits, Risk and Financial Services, Talent and Rewards and Exchange Solutions. The Company delivers consulting services and solutions, and investment advice and solutions. The Company’s global services include: Program strategy, design and pricing; Employee engagement in health benefits; Health condition management consulting; Pharmacy benefit management consulting; Absence and disability management consulting; Workforce well-being evaluation and wellness and health promotion consulting; Performance measurement and monitoring. The Company provides other services, including product development, predictive modeling, strategies to enter into new markets, claim consulting and catastrophe modeling.

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