Broadridge Financial Solutions (NYSE:BR) and Insperity (NYSE:NSP) Head to Head Review

Insperity (NYSE:NSP) and Broadridge Financial Solutions (NYSE:BR) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Profitability

This table compares Insperity and Broadridge Financial Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insperity	-0.23%	-19.99%	-0.60%
Broadridge Financial Solutions	15.04%	40.25%	12.97%

Risk & Volatility

Insperity has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Broadridge Financial Solutions has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Insperity and Broadridge Financial Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insperity	2	2	1	0	1.80
Broadridge Financial Solutions	0	4	4	0	2.50

Insperity currently has a consensus price target of $53.33, suggesting a potential upside of 4.02%. Broadridge Financial Solutions has a consensus price target of $213.71, suggesting a potential upside of 23.14%. Given Broadridge Financial Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Broadridge Financial Solutions is more favorable than Insperity.

Dividends

Insperity pays an annual dividend of $2.40 per share and has a dividend yield of 4.7%. Broadridge Financial Solutions pays an annual dividend of $3.90 per share and has a dividend yield of 2.2%. Insperity pays out -558.1% of its earnings in the form of a dividend. Broadridge Financial Solutions pays out 40.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Insperity has increased its dividend for 14 consecutive years and Broadridge Financial Solutions has increased its dividend for 18 consecutive years. Insperity is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

93.4% of Insperity shares are held by institutional investors. Comparatively, 90.0% of Broadridge Financial Solutions shares are held by institutional investors. 5.8% of Insperity shares are held by insiders. Comparatively, 1.1% of Broadridge Financial Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Insperity and Broadridge Financial Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insperity	$6.81 billion	0.29	-$7.00 million	($0.43)	-119.23
Broadridge Financial Solutions	$7.48 billion	2.65	$1.12 billion	$9.62	18.04

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

Summary

Broadridge Financial Solutions beats Insperity on 13 of the 17 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 Broadridge Financial Solutions

Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and distributes regulatory reports, class action, and corporate action/reorganization event information, as well as tax reporting solutions. It also offers ProxyEdge, an electronic proxy delivery and voting solution; data-driven solutions and an end-to-end platform for content management, composition, and omni-channel distribution of regulatory, marketing, and transactional information, as well as mutual fund trade processing services; solutions for public corporations and mutual funds; data and analytics solutions; SEC filing and capital markets transaction services; registrar, stock transfer, and record-keeping services; and omni-channel customer communications solutions, as well as operates Broadridge Communications Cloud platform that creates, delivers, and manages communications and customer engagement activities. Its Global Technology and Operations segment provides solutions that automate the front-to-back transaction lifecycle of equity, mutual fund, fixed income, foreign exchange and exchange-traded derivatives, order capture and execution, trade confirmation, margin, cash management, clearing and settlement, reference data management, reconciliations, securities financing and collateral management, asset servicing, compliance and regulatory reporting, portfolio accounting, and custody-related services. This segment also offers business process outsourcing services; technology solutions, such portfolio management, compliance, fee billing, and operational support solutions; and capital market and wealth and investment management solutions. The company was founded in 1962 and is headquartered in Lake Success, New York.