TriNet Group (NYSE: TNET) and Kelly Services (NASDAQ:KELYA) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitabiliy, dividends, analyst recommendations, earnings, institutional ownership and valuation.
Insider and Institutional Ownership
53.0% of TriNet Group shares are owned by institutional investors. Comparatively, 65.9% of Kelly Services shares are owned by institutional investors. 41.8% of TriNet Group shares are owned by company insiders. Comparatively, 13.3% of Kelly Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares TriNet Group and Kelly Services’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TriNet Group||$3.19 billion||0.84||$205.56 million||$1.49||26.03|
|Kelly Services||$5.22 billion||0.16||$91.70 million||$3.15||7.00|
TriNet Group has higher revenue, but lower earnings than Kelly Services. Kelly Services is trading at a lower price-to-earnings ratio than TriNet Group, indicating that it is currently the more affordable of the two stocks.
This table compares TriNet Group and Kelly Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. TriNet Group does not pay a dividend. Kelly Services pays out 9.5% of its earnings in the form of a dividend.
This is a summary of current ratings and target prices for TriNet Group and Kelly Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TriNet Group presently has a consensus price target of $33.33, indicating a potential downside of 14.05%. Given TriNet Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TriNet Group is more favorable than Kelly Services.
Risk & Volatility
TriNet Group has a beta of 2.94, indicating that its share price is 194% more volatile than the S&P 500. Comparatively, Kelly Services has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
TriNet Group beats Kelly Services on 12 of the 16 factors compared between the two stocks.
TriNet Group Company Profile
TriNet Group, Inc. is a provider of human resources (HR) solutions for small to medium-sized businesses (SMBs). The Company’s HR solutions include services, such as multi-state payroll processing and tax administration, employee benefits programs, including health insurance and retirement plans, workers’ compensation insurance and claims management, employment and benefit law compliance, and other services. The Company provides an HR technology platform with online and mobile tools that allow its clients and their worksite employees (WSEs) to store, view and manage their HR-related information and conduct a range of HR-related transactions anytime and anywhere. The Company’s HR products and solutions include capabilities, such as technology platform, HR expertise, benefits and compliance. The Company’s clients are distributed across a range of industries, including technology, life sciences, financial services, property management, retail, manufacturing and hospitality.
Kelly Services Company Profile
Kelly Services, Inc. is a workforce solutions provider, which is engaged in offering a range of specialty services. The Company provides workforce solutions in three regions: the Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific (APAC). The Company’s segments are Americas Commercial, Americas Professional and Technical (Americas PT), EMEA Commercial, EMEA Professional and Technical (EMEA PT), and Outsourcing and Consulting Group (OCG). The Americas Commercial segment includes Office, Contact Center, Education, Marketing and Electronic Assembly. The Americas PT segment includes a range of specialty staffing services. The EMEA Commercial segment provides a range of staffing services, including Office, Contact Center and its temporary-to-hire service. The EMEA PT segment provides Engineering, Finance and Accounting services. The OCG segment delivers talent management solutions across multiple regions, skill sets and a spectrum of talent categories.
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