Insperity vs Paychex Which Performs Better?

Insperity and Paychex are both reputable companies in the human resources industry, offering services such as payroll processing, benefits administration, and HR consulting. While both companies have experienced growth and success in recent years, there are differences in their business models and financial performance. Insperity specializes in providing HR solutions for small and medium-sized businesses, while Paychex caters to a wider range of clients. Investors should consider factors such as revenue growth, profitability, and market trends when comparing Insperity vs Paychex stocks.

Insperity or Paychex?

When comparing Insperity and Paychex, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Insperity and Paychex.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Insperity has a dividend yield of 4.02%, while Paychex has a dividend yield of 3.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Insperity reports a 5-year dividend growth of 22.76% year and a payout ratio of 73.81%. On the other hand, Paychex reports a 5-year dividend growth of 9.68% year and a payout ratio of 79.29%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Insperity P/E ratio at 23.25 and Paychex's P/E ratio at 30.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Insperity P/B ratio is 22.23 while Paychex's P/B ratio is 13.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Insperity has seen a 5-year revenue growth of 0.85%, while Paychex's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Insperity's ROE at 95.53% and Paychex's ROE at 45.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $72.74 for Insperity and $142.73 for Paychex. Over the past year, Insperity's prices ranged from $72.74 to $119.41, with a yearly change of 64.16%. Paychex's prices fluctuated between $114.72 and $150.71, with a yearly change of 31.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.