TriNet Group (TNET) and CDI Corporation (NYSE:CDI) Financial Analysis

TriNet Group (NYSE: TNET) and CDI Corporation (NYSE:CDI) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Insider & Institutional Ownership

53.0% of TriNet Group shares are owned by institutional investors. Comparatively, 46.2% of CDI Corporation shares are owned by institutional investors. 42.4% of TriNet Group shares are owned by company insiders. Comparatively, 8.8% of CDI Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for TriNet Group and CDI Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriNet Group 0 2 1 0 2.33
CDI Corporation 0 0 0 0 N/A

TriNet Group currently has a consensus price target of $33.33, indicating a potential downside of 10.80%. Given TriNet Group’s higher possible upside, analysts plainly believe TriNet Group is more favorable than CDI Corporation.

Earnings & Valuation

This table compares TriNet Group and CDI Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TriNet Group $3.19 billion 0.81 $205.56 million $1.49 25.08
CDI Corporation $761.18 million 0.20 -$9.24 million ($1.83) -4.48

TriNet Group has higher revenue and earnings than CDI Corporation. CDI Corporation 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 and Risk

TriNet Group has a beta of 2.94, suggesting that its share price is 194% more volatile than the S&P 500. Comparatively, CDI Corporation has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
TriNet Group 3.33% 201.15% 5.42%
CDI Corporation -4.47% -7.80% -4.81%

Summary

TriNet Group beats CDI Corporation on 12 of the 12 factors compared between the two stocks.

About TriNet Group

TriNet Group, Inc. is a provider of human resources (HR) solutions for small to medium-sized businesses (SMBs). The Company’s HR solutions include services, such as 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. The Company provides an HR technology platform with online and mobile tools that allow its clients and their worksite employees (WSEs) to store, view and manage their HR-related information and conduct a range of HR-related transactions anytime and anywhere. The Company’s HR products and solutions include capabilities, such as technology platform, HR expertise, benefits and compliance. The Company’s clients are distributed across a range of industries, including technology, life sciences, financial services, property management, retail, manufacturing and hospitality.

About CDI Corporation

CDI Corp. provides engineering, information technology and staffing solutions. The Company operates in three segments: Global Engineering and Technology Solutions (GETS), Professional Staffing Services (PSS) and Management Recruiters International (MRI). It provides staffing services through its MRINetwork of franchisees. The GETS segment provides engineering and information technology solutions that involve the production of deliverable work products or services performed at its facility or at a customer’s facility. The PSS segment provides technical and professional personnel for discrete periods of time to augment the customer’s workforce in times of project, seasonal, peak period or business cycle needs. The MRI segment is a global franchisor that does business as MRINetwork and provides the use of its trademarks, business systems and training and support services to its franchisees. It serves the oil, gas and chemicals, aerospace and industrial equipment, and hi-tech industries.

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