TriNet Group (TNET) versus Kelly Services (KELYA) Head-To-Head Review
TriNet Group (NYSE: TNET) and Kelly Services (NASDAQ:KELYA) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitabiliy, analyst recommendations and dividends.
Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.3%. TriNet Group does not pay a dividend. Kelly Services pays out 9.5% of its earnings in the form of a dividend.
This table compares TriNet Group and Kelly Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares TriNet Group and Kelly Services’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TriNet Group||$3.13 billion||0.72||$175.90 million||$1.10||29.95|
|Kelly Services||$5.22 billion||0.17||$91.70 million||$3.15||7.45|
TriNet Group has higher revenue, but lower earnings than Kelly Services. Kelly 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.
Institutional & Insider Ownership
53.2% of TriNet Group shares are held by institutional investors. Comparatively, 65.6% of Kelly Services shares are held by institutional investors. 42.4% of TriNet Group shares are held by company insiders. Comparatively, 16.1% of Kelly Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings for TriNet Group and Kelly Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TriNet Group currently has a consensus target price of $26.00, suggesting a potential downside of 21.09%. Given TriNet Group’s stronger consensus rating and higher probable upside, research analysts clearly believe TriNet Group is more favorable than Kelly Services.
Volatility and Risk
TriNet Group has a beta of 2.93, meaning that its stock price is 193% more volatile than the S&P 500. Comparatively, Kelly Services has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
TriNet Group beats Kelly Services on 12 of the 16 factors compared between the two stocks.
About TriNet Group
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.
About Kelly Services
Kelly Services, Inc. is a workforce solutions provider, which is engaged in offering a range of specialty services. The Company provides workforce solutions in three regions: the Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific (APAC). The Company’s segments are Americas Commercial, Americas Professional and Technical (Americas PT), EMEA Commercial, EMEA Professional and Technical (EMEA PT), and Outsourcing and Consulting Group (OCG). The Americas Commercial segment includes Office, Contact Center, Education, Marketing and Electronic Assembly. The Americas PT segment includes a range of specialty staffing services. The EMEA Commercial segment provides a range of staffing services, including Office, Contact Center and its temporary-to-hire service. The EMEA PT segment provides Engineering, Finance and Accounting services. The OCG segment delivers talent management solutions across multiple regions, skill sets and a spectrum of talent categories.
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