TriNet (TNET) vs. The Competition Financial Survey

TriNet (NYSE: TNET) is one of 120 public companies in the “Business services, not elsewhere classified” industry, but how does it contrast to its peers? We will compare TriNet to related companies based on the strength of its analyst recommendations, profitability, earnings, dividends, institutional ownership, valuation and risk.

Institutional and Insider Ownership

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85.9% of TriNet shares are held by institutional investors. Comparatively, 62.5% of shares of all “Business services, not elsewhere classified” companies are held by institutional investors. 41.8% of TriNet shares are held by company insiders. Comparatively, 15.7% of shares of all “Business services, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

TriNet has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500. Comparatively, TriNet’s peers have a beta of 0.66, indicating that their average share price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for TriNet and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriNet 1 2 1 0 2.00
TriNet Competitors 707 3567 6959 273 2.59

TriNet currently has a consensus price target of $43.00, suggesting a potential downside of 11.32%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 5.47%. Given TriNet’s peers stronger consensus rating and higher probable upside, analysts clearly believe TriNet has less favorable growth aspects than its peers.

Profitability

This table compares TriNet and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TriNet 5.42% 102.76% 6.02%
TriNet Competitors 5.39% -51.24% 2.19%

Earnings & Valuation

This table compares TriNet and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TriNet $3.28 billion $178.00 million 28.19
TriNet Competitors $2.38 billion $315.40 million 13.36

TriNet has higher revenue, but lower earnings than its peers. TriNet is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

TriNet beats its peers on 8 of the 13 factors compared.

About TriNet

TriNet Group, Inc. provides human resources solutions for small and midsize businesses in the United States and Canada. The company offers 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. It serves clients in various industries, including technology, life sciences, not-for-profit, professional services, financial services, property management, retail, manufacturing, and hospitality. The company markets its solutions through its sales representatives. TriNet Group, Inc. was founded in 1988 and is headquartered in San Leandro, California.

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