Head to Head Review: TriNet Group (NYSE:TNET) & Corpay (NYSE:CPAY)

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

Analyst Recommendations

This is a breakdown of recent ratings for Corpay and TriNet Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corpay	0	4	10	1	2.80
TriNet Group	1	1	2	0	2.25

Corpay presently has a consensus target price of $369.29, indicating a potential upside of 7.40%. TriNet Group has a consensus target price of $117.00, indicating a potential upside of 29.91%. Given TriNet Group’s higher possible upside, analysts plainly believe TriNet Group is more favorable than Corpay.

Insider & Institutional Ownership

98.8% of Corpay shares are held by institutional investors. Comparatively, 96.8% of TriNet Group shares are held by institutional investors. 6.1% of Corpay shares are held by company insiders. Comparatively, 37.1% of TriNet Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Corpay has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, TriNet Group has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corpay	26.14%	39.44%	7.54%
TriNet Group	5.29%	248.94%	7.42%

Earnings and Valuation

This table compares Corpay and TriNet Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corpay	$3.88 billion	6.18	$981.89 million	$14.02	24.52
TriNet Group	$4.97 billion	0.90	$375.00 million	$5.19	17.35

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

Summary

Corpay beats TriNet Group on 11 of the 15 factors compared between the two stocks.

About Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.

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.