Insperity (NSP) vs. The Competition Head-To-Head Contrast

Insperity (NYSE: NSP) is one of 23 public companies in the “Help supply services” industry, but how does it compare to its competitors? We will compare Insperity to similar companies based on the strength of its analyst recommendations, profitability, valuation, risk, earnings, dividends and institutional ownership.

Insider and Institutional Ownership

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83.5% of Insperity shares are held by institutional investors. Comparatively, 62.2% of shares of all “Help supply services” companies are held by institutional investors. 27.5% of Insperity shares are held by company insiders. Comparatively, 20.0% of shares of all “Help supply services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Insperity and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insperity 2.55% 102.86% 9.10%
Insperity Competitors 1.78% -1.82% 5.49%

Volatility and Risk

Insperity has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Insperity’s competitors have a beta of 1.18, indicating that their average stock price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Insperity and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insperity 0 1 2 0 2.67
Insperity Competitors 69 341 565 11 2.53

Insperity currently has a consensus target price of $60.67, indicating a potential downside of 18.62%. As a group, “Help supply services” companies have a potential upside of 10.81%. Given Insperity’s competitors higher possible upside, analysts clearly believe Insperity has less favorable growth aspects than its competitors.

Dividends

Insperity pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Insperity pays out 39.2% of its earnings in the form of a dividend. As a group, “Help supply services” companies pay a dividend yield of 1.5% and pay out 28.2% of their earnings in the form of a dividend. Insperity has increased its dividend for 6 consecutive years. Insperity lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Insperity and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Insperity $3.30 billion $84.40 million 36.54
Insperity Competitors $4.22 billion $125.65 million 11.46

Insperity’s competitors have higher revenue and earnings than Insperity. Insperity is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Insperity beats its competitors on 8 of the 15 factors compared.

Insperity Company Profile

Insperity, Inc. provides human resources (HR) and business solutions to enhance business performance for small and medium-sized businesses in the United States. The company offers its HR services through its Workforce Optimization and Workforce Synchronization solutions, which encompasses a range of human resources functions comprising payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management and training, and development services. It also provides Insperity Premier, a cloud-based human capital management platform that provides professional employer organization HR outsourcing solutions to its clients and worksite employees; and Workforce Administration solution that offers human capital management and payroll services. In addition, the company offers other business performance solutions consisting of human capital management, payroll services, time and attendance, performance management, organizational planning, recruiting services, employment screening and expense management services, retirement services, and insurance services via desktop applications and cloud-based delivery models. 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.

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