Insperity (NYSE:NSP) vs. TCTM Kids IT Education (NASDAQ:VSA) Critical Contrast

Insperity (NYSE:NSP) and TCTM Kids IT Education (NASDAQ:VSA) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Earnings & Valuation

This table compares Insperity and TCTM Kids IT Education”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insperity	$6.58 billion	0.20	$91.00 million	$0.46	76.98
TCTM Kids IT Education	$160.41 million	0.03	-$80.36 million	($0.50)	-0.19

Insperity has higher revenue and earnings than TCTM Kids IT Education. TCTM Kids IT Education is trading at a lower price-to-earnings ratio than Insperity, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Insperity has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, TCTM Kids IT Education has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500.

Profitability

This table compares Insperity and TCTM Kids IT Education’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insperity	0.25%	12.53%	0.59%
TCTM Kids IT Education	N/A	N/A	N/A

Institutional and Insider Ownership

93.4% of Insperity shares are owned by institutional investors. Comparatively, 49.8% of TCTM Kids IT Education shares are owned by institutional investors. 5.5% of Insperity shares are owned by insiders. Comparatively, 32.9% of TCTM Kids IT Education shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Insperity and TCTM Kids IT Education, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insperity	3	1	1	0	1.60
TCTM Kids IT Education	1	0	0	0	1.00

Insperity presently has a consensus target price of $46.67, indicating a potential upside of 31.79%. Given Insperity’s stronger consensus rating and higher probable upside, research analysts plainly believe Insperity is more favorable than TCTM Kids IT Education.

Summary

Insperity beats TCTM Kids IT Education on 13 of the 14 factors compared between the two stocks.

About Insperity

Insperity, Inc. engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses primarily in the United States. It offers its HR services through its workforce optimization and workforce synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services. The company also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; people management services; and employer liability management services, as well as solutions for middle market. In addition, it offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; integrated payroll; benefits administration; HR administration and employee onboarding; time and attendance; performance management; reporting and analytics; recruiting; employment screening; retirement; and insurance services. 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.

About TCTM Kids IT Education

Tarena International, Inc., through its subsidiaries, provides professional education services through full-time and part-time classes under the Tarena brand in the People’s Republic of China. It operates through two segments, Adult Professional Education and Childhood & Adolescent Quality Education Services. The company offers education courses in 7 information technology (IT) subjects, such as Java, software testing, Linux and network engineering, Big Data, Web front-end development, Python, and network engineer courses; and 3 non-IT subjects, including digital art, online sales and marketing, and visual effects-VFX, as well as live distance instruction, classroom-based tutoring, and online learning modules. It also provides 9 childhood and adolescent quality education programs, including robotics programming, graphical intelligent programming, NOI informatics Olympiad, Python artificial intelligence, high level hardware programming for secondary school, soft and hard programming enlightenment, creative programming starter, and SPIKE starter and advanced under the TongchengTongmei brand. In addition, the company offers online learning platform for education courses and job placement training courses. As of December 31, 2021, it had a network of 100 directly managed learning centers in 44 cities; and 238 TongchengTongmei standalone learning centers in 54 cities. The company was founded in 2002 and is headquartered in Beijing, the People’s Republic of China.