Insperity, Inc. (NSP) vs TriNet Group, Inc. (TNET)

Insperity, Inc. and TriNet Group, Inc. are both Staffing & Employment Services companies. TriNet Group, Inc. is the larger, with a market value of $3.0B against $1.8B — 1.6× the size. Insperity, Inc. has negative trailing earnings, so its P/E is not meaningful; TriNet Group, Inc. trades at 17.4×. Insperity, Inc. grew revenue faster over the last twelve months: 2.64% against −3.32%. TriNet Group, Inc. has the higher net margin (3.63% vs −0.23%) and the higher return on invested capital (0.00% vs 0.00%). Across the 20 metrics below, TriNet Group, Inc. leads on 11 and Insperity, Inc. on 9.

Valuation

Metric NSP TNET Staffing & Employment Services median
P/E n/m 17.36 24.32
P/S 0.26 0.62 0.41
P/B 29.80 23.96 1.28
Price to free cash flow 9.37 10.40 18.57
EV/EBITDA 37.48 6.91 10.55
EV/Sales 0.22 0.54 0.40
Earnings yield (0.90%) 5.76% 0.99%
Free cash flow yield 10.67% 9.62% 2.79%

Profitability

Metric NSP TNET Staffing & Employment Services median
Gross margin 12.89% 18.15% 23.11%
Operating margin (0.04%) 5.08% 0.08%
Net margin (0.23%) 3.63% 0.23%
Free cash flow margin 2.82% 5.97% 1.23%
Return on equity (18.50%) 150.86% 2.31%
Return on assets (0.75%) 4.98% 0.00%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric NSP TNET Staffing & Employment Services median
Revenue growth (TTM) 2.64% (3.32%) 0.69%
EPS growth (last fiscal year) (107.85%) (6.71%) —
Revenue growth, 5-year CAGR 9.70% 4.15% 1.23%
Net income growth, 5-year CAGR 0.00% (10.64%) 0.00%

Health

Metric NSP TNET Staffing & Employment Services median
Debt to equity 6.87 7.17 0.08
Current ratio 1.11 1.13 1.50
Net debt to EBITDA (10.66) (3.31) (0.22)

Dividend

Metric NSP TNET Staffing & Employment Services median
Dividend yield 2.31% — 2.16%
Payout ratio 0.45 0.00 0.30

Size

Metric NSP TNET Staffing & Employment Services median
Market cap 1.83b 3.01b 590.17m

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