TriNet Group (NYSE:TNET – Get Free Report) and Science Applications International (NASDAQ:SAIC – Get Free Report) are both mid-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.
Institutional and Insider Ownership
96.8% of TriNet Group shares are owned by institutional investors. Comparatively, 76.0% of Science Applications International shares are owned by institutional investors. 40.0% of TriNet Group shares are owned by company insiders. Comparatively, 0.7% of Science Applications International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings for TriNet Group and Science Applications International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TriNet Group | 1 | 5 | 1 | 0 | 2.00 |
| Science Applications International | 1 | 8 | 2 | 0 | 2.09 |
Valuation and Earnings
This table compares TriNet Group and Science Applications International”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TriNet Group | $5.01 billion | 0.63 | $155.00 million | $3.74 | 18.45 |
| Science Applications International | $7.26 billion | 0.73 | $358.00 million | $8.55 | 14.82 |
Science Applications International has higher revenue and earnings than TriNet Group. Science Applications International is trading at a lower price-to-earnings ratio than TriNet Group, indicating that it is currently the more affordable of the two stocks.
Dividends
TriNet Group pays an annual dividend of $1.16 per share and has a dividend yield of 1.7%. Science Applications International pays an annual dividend of $1.48 per share and has a dividend yield of 1.2%. TriNet Group pays out 31.0% of its earnings in the form of a dividend. Science Applications International pays out 17.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TriNet Group has increased its dividend for 1 consecutive years. TriNet Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
TriNet Group has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Science Applications International has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.
Profitability
This table compares TriNet Group and Science Applications International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TriNet Group | 3.58% | 227.28% | 6.04% |
| Science Applications International | 5.13% | 34.68% | 9.45% |
Summary
Science Applications International beats TriNet Group on 10 of the 17 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 Science Applications International
Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company’s offerings include engineering; technology integration; IT modernization; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers’ IT infrastructure, as well as cloud migration, managed services, infrastructure modernization, and enterprise IT-as-a-service solutions. It serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; Department of Defense agencies; National Aeronautics and Space Administration; the U.S. Department of State; Department of Justice; Department of Homeland Security; and various intelligence community agencies, as well as U.S. federal civilian agencies. The company was formerly known as SAIC Gemini, Inc. and changed its name to Science Applications International Corporation in September 2013. Science Applications International Corporation was founded in 1969 and is headquartered in Reston, Virginia.
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