Insperity (NSP) & SThree (STREF) Head to Head Review

Insperity (NYSE: NSP) and SThree (OTCMKTS:STREF) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Risk & Volatility

Insperity has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, SThree has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Valuation and Earnings

This table compares Insperity and SThree’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Insperity $3.30 billion 1.18 $84.40 million $2.04 45.56
SThree $1.32 billion 0.44 N/A N/A N/A

Insperity has higher revenue and earnings than SThree.

Dividends

Insperity pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. SThree does not pay a dividend. Insperity pays out 39.2% of its earnings in the form of a dividend. Insperity has raised its dividend for 6 consecutive years.

Profitability

This table compares Insperity and SThree’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insperity 2.87% 122.34% 10.88%
SThree N/A N/A N/A

Insider and Institutional Ownership

80.9% of Insperity shares are held by institutional investors. 9.6% of Insperity shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Insperity and SThree, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insperity 0 1 2 0 2.67
SThree 0 0 0 0 N/A

Insperity presently has a consensus target price of $83.67, suggesting a potential downside of 9.99%. Given Insperity’s higher probable upside, equities research analysts clearly believe Insperity is more favorable than SThree.

Summary

Insperity beats SThree on 12 of the 13 factors compared between the two stocks.

Insperity Company Profile

Insperity, Inc. provides human resources (HR) and business solutions to enhance business performance for small and medium-sized businesses in the United States. The company offers its HR services through its Workforce Optimization and Workforce Synchronization solutions, which encompasses a range of human resources functions comprising payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management and training, and development services. It also provides Insperity Premier, a cloud-based human capital management platform that provides professional employer organization HR outsourcing solutions to its clients and worksite employees; and Workforce Administration solution that offers human capital management and payroll services. In addition, the company offers other business performance solutions consisting of human capital management, payroll services, time and attendance, performance management, organizational planning, recruiting services, employment screening and expense management services, retirement services, and insurance services via desktop applications and cloud-based delivery models. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas.

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