TriNet Group (NYSE:TNET – Get Free Report) and Clarivate (NYSE:CLVT – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for TriNet Group and Clarivate, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TriNet Group | 1 | 5 | 1 | 0 | 2.00 |
| Clarivate | 3 | 3 | 1 | 0 | 1.71 |
TriNet Group currently has a consensus price target of $56.80, indicating a potential downside of 17.97%. Clarivate has a consensus price target of $3.02, indicating a potential upside of 59.19%. Given Clarivate’s higher probable upside, analysts plainly believe Clarivate is more favorable than TriNet Group.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TriNet Group | $4.88 billion | 0.65 | $155.00 million | $3.74 | 18.52 |
| Clarivate | $2.46 billion | 0.49 | -$201.10 million | ($0.52) | -3.64 |
TriNet Group has higher revenue and earnings than Clarivate. Clarivate is trading at a lower price-to-earnings ratio than TriNet Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TriNet Group and Clarivate’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TriNet Group | 3.58% | 227.28% | 6.04% |
| Clarivate | -13.84% | 9.15% | 3.99% |
Volatility and Risk
TriNet Group has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Clarivate has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
Insider and Institutional Ownership
96.8% of TriNet Group shares are held by institutional investors. Comparatively, 85.7% of Clarivate shares are held by institutional investors. 40.0% of TriNet Group shares are held by insiders. Comparatively, 22.9% of Clarivate shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
TriNet Group beats Clarivate on 11 of the 13 factors compared between the two stocks.
About TriNet Group
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.
About Clarivate
Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.
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