PAYX vs. TNET, NSP, PAE, FORR, PRGX, ADP, FI, FIS, GPN, and BR
Should you be buying Paychex stock or one of its competitors? The main competitors of Paychex include TriNet Group (TNET), Insperity (NSP), PAE (PAE), Forrester Research (FORR), PRGX Global (PRGX), Automatic Data Processing (ADP), Fiserv (FI), Fidelity National Information Services (FIS), Global Payments (GPN), and Broadridge Financial Solutions (BR).
Paychex (NASDAQ:PAYX) and TriNet Group (NYSE:TNET) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, community ranking, valuation, media sentiment, institutional ownership, risk, earnings and dividends.
In the previous week, Paychex had 5 more articles in the media than TriNet Group. MarketBeat recorded 9 mentions for Paychex and 4 mentions for TriNet Group. Paychex's average media sentiment score of 1.30 beat TriNet Group's score of 0.42 indicating that Paychex is being referred to more favorably in the media.
Paychex has a net margin of 31.86% compared to TriNet Group's net margin of 6.78%. TriNet Group's return on equity of 124.38% beat Paychex's return on equity.
Paychex has higher revenue and earnings than TriNet Group. TriNet Group is trading at a lower price-to-earnings ratio than Paychex, indicating that it is currently the more affordable of the two stocks.
Paychex has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, TriNet Group has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.
Paychex presently has a consensus target price of $123.00, indicating a potential upside of 0.34%. TriNet Group has a consensus target price of $117.50, indicating a potential upside of 11.05%. Given TriNet Group's stronger consensus rating and higher probable upside, analysts plainly believe TriNet Group is more favorable than Paychex.
TriNet Group received 10 more outperform votes than Paychex when rated by MarketBeat users. Likewise, 66.98% of users gave TriNet Group an outperform vote while only 42.56% of users gave Paychex an outperform vote.
Paychex pays an annual dividend of $3.92 per share and has a dividend yield of 3.2%. TriNet Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. Paychex pays out 85.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TriNet Group pays out 16.4% of its earnings in the form of a dividend.
83.5% of Paychex shares are owned by institutional investors. Comparatively, 96.8% of TriNet Group shares are owned by institutional investors. 11.5% of Paychex shares are owned by insiders. Comparatively, 37.1% of TriNet Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
TriNet Group beats Paychex on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PAYX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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