TriNet Group (NYSE: TNET) and BG Staffing (NASDAQ:BGSF) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitabiliy, risk, earnings, dividends and valuation.

Earnings and Valuation

This table compares TriNet Group and BG Staffing’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TriNet Group $3.19 billion 0.84 $205.56 million $1.49 26.03
BG Staffing $257.30 million 0.54 $22.46 million N/A N/A

TriNet Group has higher revenue and earnings than BG Staffing.

Profitability

This table compares TriNet Group and BG Staffing’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TriNet Group 3.33% 201.15% 5.42%
BG Staffing 2.29% 13.02% 6.54%

Insider and Institutional Ownership

53.0% of TriNet Group shares are owned by institutional investors. 41.8% of TriNet Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for TriNet Group and BG Staffing, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriNet Group 0 2 1 0 2.33
BG Staffing 0 0 0 0 N/A

TriNet Group presently has a consensus target price of $33.33, indicating a potential downside of 14.05%. Given TriNet Group’s higher possible upside, equities analysts clearly believe TriNet Group is more favorable than BG Staffing.

Summary

TriNet Group beats BG Staffing on 10 of the 11 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 BG Staffing

BG Staffing, Inc. (BG Staffing) is a provider of temporary staffing services. The Company provides temporary workers to a range of customers that are seeking to match their workforce requirements to their business needs. Its customers operate across a diverse set of industries. The Company’s operations are organized into three segments: Commercial, Multifamily and Professional. The Company’s temporary staffing services consist of on-demand or short-term staffing assignments, contract staffing, and on-site management administration. Short-term staffing services assist employers in dealing with employee demands caused by such factors as seasonality, fluctuations in customer demand, vacations, illnesses, parental leave, and special projects. The Company’s contract staffing services place temporary employees with customers for time-periods of more than three months or for an indefinite time period.

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