TriNet Group (NYSE:TNET) and Fidelity National Information Servcs (NYSE:FIS) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
Earnings & Valuation
This table compares TriNet Group and Fidelity National Information Servcs’ top-line 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|
|Fidelity National Information Servcs||$9.12 billion||3.86||$1.32 billion||$4.42||24.31|
Fidelity National Information Servcs has higher revenue and earnings than TriNet Group. Fidelity National Information Servcs is trading at a lower price-to-earnings ratio than TriNet Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
TriNet Group has a beta of 2.4, meaning that its stock price is 140% more volatile than the S&P 500. Comparatively, Fidelity National Information Servcs has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
This is a summary of current recommendations for TriNet Group and Fidelity National Information Servcs, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity National Information Servcs||0||2||11||0||2.85|
TriNet Group presently has a consensus target price of $58.33, suggesting a potential upside of 25.64%. Fidelity National Information Servcs has a consensus target price of $117.73, suggesting a potential upside of 9.54%. Given TriNet Group’s higher possible upside, analysts plainly believe TriNet Group is more favorable than Fidelity National Information Servcs.
This table compares TriNet Group and Fidelity National Information Servcs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity National Information Servcs||17.89%||15.78%||6.91%|
Institutional and Insider Ownership
85.5% of TriNet Group shares are owned by institutional investors. Comparatively, 87.9% of Fidelity National Information Servcs shares are owned by institutional investors. 38.9% of TriNet Group shares are owned by company insiders. Comparatively, 2.1% of Fidelity National Information Servcs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Fidelity National Information Servcs pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. TriNet Group does not pay a dividend. Fidelity National Information Servcs pays out 29.0% of its earnings in the form of a dividend.
Fidelity National Information Servcs beats TriNet Group on 10 of the 16 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.
About Fidelity National Information Servcs
Fidelity National Information Services, Inc. operates as a financial services technology company in the United States and internationally. It operates through Integrated Financial Solutions and Global Financial Solutions segments. The Integrated Financial Solutions segment offers core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail solutions; corporate liquidity and wealth management services; item processing and output services; government payments solutions; and e-payment solutions. The Global Financial Solutions segment provides capital markets, asset management, and insurance solutions, as well as banking and payments solutions to financial institutions, such as securities processing and finance, global trading, asset management and insurance, and retail banking and payment services. The company was founded in 1968 and is headquartered in Jacksonville, Florida.
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