TriNet vs Insperity Which Should You Buy?

TriNet and Insperity are both widely recognized human resources and payroll services providers that cater to small and medium-sized businesses. While they operate in the same industry, they have unique approaches and strengths that set them apart. TriNet is known for its technology-driven solutions and customizable services, whereas Insperity is praised for its personalized approach and comprehensive HR offerings. Investors evaluating these stocks must consider factors such as financial performance, market share, and growth potential to make informed decisions.

TriNet or Insperity?

When comparing TriNet and Insperity, 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 TriNet and Insperity.

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. TriNet has a dividend yield of 0.8%, while Insperity has a dividend yield of 2.8%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TriNet reports a 5-year dividend growth of 0.00% year and a payout ratio of 14.45%. On the other hand, Insperity reports a 5-year dividend growth of 22.76% year and a payout ratio of 73.81%.

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 TriNet P/E ratio at 17.92 and Insperity's P/E ratio at 26.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TriNet P/B ratio is 36.53 while Insperity's P/B ratio is 25.70.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, TriNet has seen a 5-year revenue growth of 0.74%, while Insperity's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TriNet's ROE at 233.78% and Insperity's ROE at 95.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $91.27 for TriNet and $81.40 for Insperity. Over the past year, TriNet's prices ranged from $74.32 to $134.67, with a yearly change of 81.20%. Insperity's prices fluctuated between $71.69 and $119.41, with a yearly change of 66.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.