Comparing Remitly Global (NASDAQ:RELY) & TriNet Group (NYSE:TNET)

TriNet Group (NYSE:TNET) and Remitly Global (NASDAQ:RELY) are both mid-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TriNet Group	5.29%	248.94%	7.42%
Remitly Global	-5.63%	-11.58%	-6.57%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriNet Group	$4.97 billion	0.90	$375.00 million	$5.19	17.33
Remitly Global	$1.18 billion	3.90	-$117.84 million	($0.35)	-66.20

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

Risk and Volatility

TriNet Group has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Remitly Global has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for TriNet Group and Remitly Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriNet Group	1	1	2	0	2.25
Remitly Global	0	1	8	0	2.89

TriNet Group presently has a consensus target price of $117.00, indicating a potential upside of 30.12%. Remitly Global has a consensus target price of $22.75, indicating a potential downside of 1.81%. Given TriNet Group’s higher probable upside, equities research analysts clearly believe TriNet Group is more favorable than Remitly Global.

Institutional and Insider Ownership

96.8% of TriNet Group shares are owned by institutional investors. Comparatively, 74.3% of Remitly Global shares are owned by institutional investors. 37.1% of TriNet Group shares are owned by company insiders. Comparatively, 8.1% of Remitly Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

TriNet Group beats Remitly Global on 11 of the 14 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 Remitly Global

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.