TriNet Group (NYSE: TNET) and Barrett Business Services (NASDAQ:BBSI) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.
This table compares TriNet Group and Barrett Business Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Barrett Business Services||2.06%||33.55%||3.62%|
Barrett Business Services pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. TriNet Group does not pay a dividend. Barrett Business Services pays out 42.0% of its earnings in the form of a dividend.
Insider & Institutional Ownership
52.9% of TriNet Group shares are owned by institutional investors. Comparatively, 72.0% of Barrett Business Services shares are owned by institutional investors. 42.4% of TriNet Group shares are owned by insiders. Comparatively, 6.0% of Barrett Business Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares TriNet Group and Barrett Business 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||0.77||$205.56 million||$1.49||23.77|
|Barrett Business Services||$881.77 million||0.41||$29.94 million||$2.38||21.06|
TriNet Group has higher revenue and earnings than Barrett Business Services. Barrett Business 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.
Volatility and Risk
TriNet Group has a beta of 2.94, indicating that its stock price is 194% more volatile than the S&P 500. Comparatively, Barrett Business Services has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for TriNet Group and Barrett Business Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Barrett Business Services||0||0||0||0||N/A|
TriNet Group presently has a consensus target price of $37.00, suggesting a potential upside of 4.46%. Given TriNet Group’s higher probable upside, analysts plainly believe TriNet Group is more favorable than Barrett Business Services.
TriNet Group beats Barrett Business Services on 12 of the 15 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.
Barrett Business Services Company Profile
Barrett Business Services, Inc. (BBSI) is a provider of business management solutions for small and mid-sized companies. The Company has developed a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. BBSI’s purpose is to advocate for business owners, particularly in the small and mid-sized business segment. The Company offers two categories of services: Professional Employer Services (PEO) and Staffing. Its staffing services include on-demand or short-term staffing assignments, contract staffing, direct placement, and long-term or indefinite-term on-site management. As of December 31, 2016, the Company operated in 20 states and the District of Columbia through a network of 57 branch locations in California, Oregon, Utah, Washington, Idaho, Arizona, Colorado, Maryland, North Carolina, Delaware, Nevada, Pennsylvania and Virginia.
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