Barrett Business Services, Inc. (BBSI) vs Insperity, Inc. (NSP)

Barrett Business Services, Inc. and Insperity, Inc. are both Staffing & Employment Services companies. Insperity, Inc. is the larger, with a market value of $1.8B against $765.8M — 2.4× the size. Insperity, Inc. has negative trailing earnings, so its P/E is not meaningful; Barrett Business Services, Inc. trades at 22.4×. Barrett Business Services, Inc. grew revenue faster over the last twelve months: 5.59% against 2.64%. Barrett Business Services, Inc. has the higher net margin (2.77% vs −0.23%) and the higher return on invested capital (24.0% vs 0.00%). Both pay a dividend; Insperity, Inc. yields more (2.31% vs 1.07%). Across the 22 metrics below, Barrett Business Services, Inc. leads on 14 and Insperity, Inc. on 8.

Valuation

Metric BBSI NSP Staffing & Employment Services median
P/E 22.40 n/m 24.32
P/S 0.60 0.26 0.41
P/B 3.72 29.80 1.28
Price to free cash flow 48.84 9.37 18.57
EV/EBITDA 12.87 37.48 10.55
EV/Sales 0.62 0.22 0.40
Earnings yield 4.46% (0.90%) 0.99%
Free cash flow yield 2.05% 10.67% 2.79%

Profitability

Metric BBSI NSP Staffing & Employment Services median
Gross margin 19.98% 12.89% 23.11%
Operating margin 4.13% (0.04%) 0.08%
Net margin 2.77% (0.23%) 0.23%
Free cash flow margin 1.23% 2.82% 1.23%
Return on equity 16.33% (18.50%) 2.31%
Return on assets 4.92% (0.75%) 0.00%
Return on invested capital 24.03% 0.00% 0.00%

Growth

Metric BBSI NSP Staffing & Employment Services median
Revenue growth (TTM) 5.59% 2.64% 0.69%
EPS growth (last fiscal year) 5.05% (107.85%) —
Revenue growth, 5-year CAGR 7.08% 9.70% 1.23%
Net income growth, 5-year CAGR 10.03% 0.00% 0.00%

Health

Metric BBSI NSP Staffing & Employment Services median
Debt to equity 0.00 6.87 0.08
Current ratio 1.14 1.11 1.50
Net debt to EBITDA (2.23) (10.66) (0.22)

Dividend

Metric BBSI NSP Staffing & Employment Services median
Dividend yield 1.07% 2.31% 2.16%
Payout ratio 0.18 0.45 0.30

Size

Metric BBSI NSP Staffing & Employment Services median
Market cap 765.83m 1.83b 590.17m

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