TriNet Group (NYSE:TNET) and Corpay (NYSE:CPAY) Critical Survey

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

Profitability

This table compares TriNet Group and Corpay’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%
Corpay	26.14%	39.44%	7.54%

Insider & Institutional Ownership

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

Analyst Ratings

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

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

TriNet Group currently has a consensus price target of $117.00, suggesting a potential upside of 29.91%. Corpay has a consensus price target of $369.29, suggesting a potential upside of 7.40%. Given TriNet Group’s higher probable upside, analysts clearly believe TriNet Group is more favorable than Corpay.

Valuation & Earnings

This table compares TriNet Group and Corpay”s revenue, earnings per share (EPS) 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	17.35
Corpay	$3.88 billion	6.18	$981.89 million	$14.02	24.52

Corpay has lower revenue, but higher earnings 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.

Risk and Volatility

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

Summary

Corpay beats TriNet Group on 11 of the 15 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 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.