WallStSmart

Heidrick & Struggles International (HSII)vsKelly Services B Inc (KELYB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kelly Services B Inc generates 239% more annual revenue ($4.06B vs $1.20B). HSII leads profitability with a 3.1% profit margin vs -6.7%. HSII appears more attractively valued with a PEG of 1.05. HSII earns a higher WallStSmart Score of 56/100 (C).

HSII

Buy

56

out of 100

Grade: C

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

KELYB

Hold

37

out of 100

Grade: F

Growth: 2.0Profit: 3.0Value: 6.3Quality: 7.5
Piotroski: 4/9Altman Z: 3.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HSIISignificantly Overvalued (-22.2%)

Margin of Safety

-22.2%

Fair Value

$48.29

Current Price

$59.01

$10.72 premium

UndervaluedFair: $48.29Overvalued
KELYBUndervalued (+57.4%)

Margin of Safety

+57.4%

Fair Value

$42.47

Current Price

$23.27

$19.20 discount

UndervaluedFair: $42.47Overvalued

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

KELYB3 strengths · Avg: 9.7/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

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

KELYB4 concerns · Avg: 3.0/10
PEG RatioValuation
1.784/10

Expensive relative to growth rate

Market CapQuality
$805.43M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.9%3/10

Operating margin of 1.9%

Return on EquityProfitability
-27.8%2/10

ROE of -27.8% — below average capital efficiency

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 : KELYB

The strongest argument for KELYB centers on Price/Book, Altman Z-Score, Debt/Equity.

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 : KELYB

The primary concerns for KELYB are PEG Ratio, Market Cap, Operating Margin.

Key Dynamics to Monitor

HSII profiles as a growth stock while KELYB 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

HSII scores higher overall (56/100 vs 37/100) and 15.9% revenue growth. KELYB offers better value entry with a 57.4% margin of safety. Both earn "Buy" and "Hold" 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 B 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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