Insperity vs Paylocity Which Is More Favorable?

Insperity and Paylocity are both companies in the human resources and payroll management industry, offering services to businesses of all sizes. Insperity focuses on providing comprehensive HR solutions, while Paylocity specializes in cloud-based payroll and HR software. Both companies have seen strong growth in recent years, with their stocks performing well in the market. Investors interested in the HR sector may want to compare the performance and value of Insperity and Paylocity stocks before making investment decisions.

Insperity or Paylocity?

When comparing Insperity and Paylocity, 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 Paylocity.

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 3.65%, while Paylocity has a dividend yield of -%. 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, Paylocity reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 25.58 and Paylocity's P/E ratio at 52.97. 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 24.47 while Paylocity's P/B ratio is 10.62.

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 Paylocity's is 1.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Insperity's ROE at 95.53% and Paylocity's ROE at 21.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $78.98 for Insperity and $210.89 for Paylocity. Over the past year, Insperity's prices ranged from $74.32 to $119.41, with a yearly change of 60.67%. Paylocity's prices fluctuated between $129.94 and $215.68, with a yearly change of 65.98%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.