TriNet Group (NYSE:TNET) and Remitly Global (NASDAQ:RELY) Critical Analysis

Remitly Global (NASDAQ:RELYGet Free Report) and TriNet Group (NYSE:TNETGet Free Report) are both mid-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Risk and Volatility

Remitly Global has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500. Comparatively, TriNet Group has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Remitly Global and TriNet Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Remitly Global 0 1 8 0 2.89
TriNet Group 1 1 2 0 2.25

Remitly Global currently has a consensus target price of $22.75, suggesting a potential downside of 1.81%. TriNet Group has a consensus target price of $117.00, suggesting a potential upside of 30.12%. Given TriNet Group’s higher probable upside, analysts plainly believe TriNet Group is more favorable than Remitly Global.

Profitability

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

Net Margins Return on Equity Return on Assets
Remitly Global -5.63% -11.58% -6.57%
TriNet Group 5.29% 248.94% 7.42%

Institutional & Insider Ownership

74.3% of Remitly Global shares are held by institutional investors. Comparatively, 96.8% of TriNet Group shares are held by institutional investors. 8.1% of Remitly Global shares are held by insiders. Comparatively, 37.1% of TriNet Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Remitly Global and TriNet Group”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Remitly Global $1.18 billion 3.90 -$117.84 million ($0.35) -66.20
TriNet Group $4.97 billion 0.90 $375.00 million $5.19 17.33

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

Summary

TriNet Group beats Remitly Global on 11 of the 14 factors compared between the two stocks.

About Remitly Global

(Get Free Report)

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.

About TriNet Group

(Get Free Report)

TriNet Group, Inc. provides comprehensive and flexible human capital management services for small and medium size businesses in the United States. 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 benefits law compliance; and other HR related services. It also provides technology platform, an online and mobile tool that allows users to store, view, and manager HR information and administer various HR transactions, such as payroll processing, tax administration and credits, employee onboarding and termination, employee performance, time and attendance, compensation reporting, expense management, and benefits enrollment and administration, as well as incorporated workforce analytics and allows professional employer organization clients to generate HR data, payroll, compensation, and other custom reports. The company serves clients in various industries, including technology, professional services, financial services, life sciences, and not-for-profit. It sells its solutions through its direct sales organization. TriNet Group, Inc. was incorporated in 1988 and is headquartered in Dublin, California.

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