TriNet Group (NYSE:TNET) and HMS (NASDAQ:HMSY) are both mid-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Institutional & Insider Ownership
85.6% of TriNet Group shares are held by institutional investors. Comparatively, 96.1% of HMS shares are held by institutional investors. 38.9% of TriNet Group shares are held by company insiders. Comparatively, 4.5% of HMS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares TriNet Group and HMS’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TriNet Group||$3.28 billion||1.00||$178.00 million||$1.72||26.99|
|HMS||$521.21 million||4.79||$40.05 million||$0.43||69.53|
TriNet Group has higher revenue and earnings than HMS. TriNet Group is trading at a lower price-to-earnings ratio than HMS, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
TriNet Group has a beta of 2.4, suggesting that its stock price is 140% more volatile than the S&P 500. Comparatively, HMS has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.
This table compares TriNet Group and HMS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for TriNet Group and HMS, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TriNet Group presently has a consensus price target of $62.00, suggesting a potential upside of 33.56%. HMS has a consensus price target of $30.56, suggesting a potential upside of 2.19%. Given TriNet Group’s higher probable upside, equities analysts plainly believe TriNet Group is more favorable than HMS.
TriNet Group beats HMS on 9 of the 14 factors compared between the two stocks.
About TriNet Group
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.
HMS Holdings Corp., through its subsidiaries, provides cost containment solutions in the United States healthcare marketplace. It provides coordination of benefits services to government and commercial healthcare payers and sponsors to coordinate benefits for claims; and payment integrity services that ensure healthcare claims billed are accurate and appropriate, as well as offers care management and consumer engagement solutions. The company's services also enable customers to recover improper payments; prevent future improper payments; reduce fraud, waste, and abuse; improve outcomes and increase retention; and ensure regulatory compliance. It serves state Medicaid programs, commercial health plans, federal government health agencies, government and private employers, children's health insurance programs, and other healthcare payers and sponsors. The company was founded in 1974 and is headquartered in Irving, Texas.
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