Thomson Reuters (NASDAQ:TRI) vs. Insperity (NYSE:NSP) Head to Head Analysis

Thomson Reuters (NASDAQ:TRI) and Insperity (NYSE:NSP) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares Thomson Reuters and Insperity”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thomson Reuters	$7.83 billion	6.42	$1.50 billion	$3.76	30.88
Insperity	$6.87 billion	0.29	-$7.00 million	($0.43)	-120.07

Thomson Reuters has higher revenue and earnings than Insperity. Insperity is trading at a lower price-to-earnings ratio than Thomson Reuters, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Thomson Reuters has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Insperity has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Thomson Reuters and Insperity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thomson Reuters	0	6	12	0	2.67
Insperity	2	2	1	0	1.80

Thomson Reuters currently has a consensus price target of $127.99, suggesting a potential upside of 10.25%. Insperity has a consensus price target of $53.33, suggesting a potential upside of 3.30%. Given Thomson Reuters’ stronger consensus rating and higher possible upside, equities analysts plainly believe Thomson Reuters is more favorable than Insperity.

Institutional & Insider Ownership

17.3% of Thomson Reuters shares are held by institutional investors. Comparatively, 93.4% of Insperity shares are held by institutional investors. 5.8% of Insperity shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Thomson Reuters and Insperity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thomson Reuters	21.22%	15.82%	10.27%
Insperity	-0.23%	-19.99%	-0.60%

Dividends

Thomson Reuters pays an annual dividend of $2.62 per share and has a dividend yield of 2.3%. Insperity pays an annual dividend of $2.40 per share and has a dividend yield of 4.6%. Thomson Reuters pays out 69.7% of its earnings in the form of a dividend. Insperity pays out -558.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Insperity has raised its dividend for 14 consecutive years. Insperity is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Thomson Reuters beats Insperity on 12 of the 17 factors compared between the two stocks.

About Thomson Reuters

Thomson Reuters Corporation provides business information services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in five segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print. The Legal Professionals segment offers research and workflow products focusing on legal research and integrated legal workflow solutions that combine content, tools, and analytics to law firms and governments. The Corporates segment provides a suite of content-enabled technology solutions for legal, tax, regulatory, compliance, and IT professionals. The Tax & Accounting Professionals segment offers research and workflow products focusing on tax offerings and automating tax workflows to tax, accounting, and audit professionals in accounting firms. The Reuters News segment provides business, financial, and international news to media organizations, professional, and news consumers through news agency and industry events. The Global Print segment offers legal and tax information primarily in print format to legal and tax professionals, governments, law schools, and corporations. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company was founded in 1851 and is headquartered in Toronto, Canada. Thomson Reuters Corporation is a subsidiary of The Woodbridge Company Limited.

About Insperity

Insperity, Inc. engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses primarily in the United States. It offers its HR services through its workforce optimization and workforce synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services. The company also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; people management services; and employer liability management services, as well as solutions for middle market. In addition, it offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; integrated payroll; benefits administration; HR administration and employee onboarding; time and attendance; performance management; reporting and analytics; recruiting; employment screening; retirement; and insurance services. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas.