Paychex (PAYX) Competitors

TriNet Group (NYSE:TNET) and Paychex (NASDAQ:PAYX) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations, institutional ownership, community ranking and media sentiment.

Do analysts recommend TNET or PAYX?

TriNet Group currently has a consensus price target of $117.00, indicating a potential upside of 24.15%. Paychex has a consensus price target of $131.62, indicating a potential downside of 7.20%. Given TriNet Group's stronger consensus rating and higher possible upside, equities research analysts clearly believe TriNet Group is more favorable than Paychex.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriNet Group	1 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.25
Paychex	2 Sell rating(s)	11 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.85

Does the media refer more to TNET or PAYX?

In the previous week, Paychex had 17 more articles in the media than TriNet Group. MarketBeat recorded 19 mentions for Paychex and 2 mentions for TriNet Group. Paychex's average media sentiment score of 1.50 beat TriNet Group's score of 1.00 indicating that Paychex is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
TriNet Group	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Paychex	16 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Is TNET or PAYX a better dividend stock?

TriNet Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. Paychex pays an annual dividend of $3.92 per share and has a dividend yield of 2.8%. TriNet Group pays out 19.3% of its earnings in the form of a dividend. Paychex pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Paychex has increased its dividend for 14 consecutive years. Paychex is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the MarketBeat Community favor TNET or PAYX?

TriNet Group received 15 more outperform votes than Paychex when rated by MarketBeat users. Likewise, 66.92% of users gave TriNet Group an outperform vote while only 41.73% of users gave Paychex an outperform vote.

Company	Underperform	Outperform
TriNet Group	Outperform Votes 358 66.92%	Underperform Votes 177 33.08%
Paychex	Outperform Votes 343 41.73%	Underperform Votes 479 58.27%

Which has more volatility & risk, TNET or PAYX?

TriNet Group has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Paychex has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Do insiders & institutionals have more ownership in TNET or PAYX?

96.8% of TriNet Group shares are held by institutional investors. Comparatively, 83.5% of Paychex shares are held by institutional investors. 37.1% of TriNet Group shares are held by company insiders. Comparatively, 11.4% of Paychex shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Which has preferable earnings & valuation, TNET or PAYX?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriNet Group	$4.92B	0.95	$375M	$5.19	18.16
Paychex	$5.28B	9.67	$1.69B	$4.69	30.24

Is TNET or PAYX more profitable?

Paychex has a net margin of 31.98% compared to TriNet Group's net margin of 5.29%. TriNet Group's return on equity of 248.94% beat Paychex's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
TriNet Group	5.29%	248.94%	7.42%
Paychex	31.98%	45.97%	14.93%

Summary

TriNet Group beats Paychex on 11 of the 21 factors compared between the two stocks.