Contrasting TriNet Group (NYSE:TNET) and Uber Technologies (NYSE:UBER)

TriNet Group (NYSE:TNET) and Uber Technologies (NYSE:UBER) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

92.8% of TriNet Group shares are owned by institutional investors. Comparatively, 62.9% of Uber Technologies shares are owned by institutional investors. 39.7% of TriNet Group shares are owned by company insiders. Comparatively, 8.7% of Uber Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for TriNet Group and Uber Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriNet Group 0 2 3 0 2.60
Uber Technologies 0 3 35 0 2.92

TriNet Group presently has a consensus price target of $73.75, indicating a potential upside of 8.44%. Uber Technologies has a consensus price target of $42.03, indicating a potential upside of 34.75%. Given Uber Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Uber Technologies is more favorable than TriNet Group.

Profitability

This table compares TriNet Group and Uber Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TriNet Group 8.03% 60.66% 12.07%
Uber Technologies -50.99% -38.83% -16.78%

Valuation & Earnings

This table compares TriNet Group and Uber Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TriNet Group $3.86 billion 1.19 $212.00 million $2.90 23.45
Uber Technologies $14.15 billion 3.86 -$8.51 billion ($6.81) -4.58

TriNet Group has higher earnings, but lower revenue than Uber Technologies. Uber Technologies is trading at a lower price-to-earnings ratio than TriNet Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

TriNet Group has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Uber Technologies has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Summary

TriNet Group beats Uber Technologies on 9 of the 14 factors compared between the two stocks.

TriNet Group Company Profile

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 Dublin, California.

Uber Technologies Company Profile

Uber Technologies, Inc. develops and supports proprietary technology applications that enable independent providers of ridesharing, and meal preparation and delivery services to transact with end-users worldwide. The company operates in two segments, Core Platform and Other Bets. Its driver partners provide ridesharing services through a range of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis, as well as based on the number of riders under the UberBLACK, UberX, UberPOOL, Express POOL, and Uber Bus names; and restaurant and delivery partners provide meal preparation and delivery services under the Uber Eats name. The company also offers Uber Central, a tool that enables companies to request, manage, and pay for rides for their employees, customers, or partners; and Uber Health, which allows healthcare professionals to arrange rides for patients going to and from the care destinations. In addition, it provides freight transportation services to shippers in the freight industry under the Uber Freight name; leases vehicles to third-parties that use the vehicles to provide ridesharing or eats services through the platforms; and provides access to rides through personal mobility products, including dockless e-bikes and e-scooters under the JUMP name. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

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