Comparing Charles River Associates (NASDAQ:CRAI) and TriNet Group (NYSE:TNET)

Charles River Associates (NASDAQ:CRAI – Get Free Report) and TriNet Group (NYSE:TNET – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Charles River Associates and TriNet Group”s revenue, earnings per share and valuation.

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

Profitability

This table compares Charles River Associates and TriNet Group’s net margins, return on equity and return on assets.

Volatility & Risk

Charles River Associates has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, TriNet Group has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Charles River Associates and TriNet Group, as reported by MarketBeat.com.

Charles River Associates presently has a consensus price target of $245.00, indicating a potential upside of 48.14%. TriNet Group has a consensus price target of $56.80, indicating a potential downside of 15.42%. Given Charles River Associates’ stronger consensus rating and higher probable upside, analysts plainly believe Charles River Associates is more favorable than TriNet Group.

Insider & Institutional Ownership

84.1% of Charles River Associates shares are held by institutional investors. Comparatively, 96.8% of TriNet Group shares are held by institutional investors. 4.5% of Charles River Associates shares are held by company insiders. Comparatively, 40.0% of TriNet Group shares are held 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.

Dividends

Charles River Associates pays an annual dividend of $2.28 per share and has a dividend yield of 1.4%. TriNet Group pays an annual dividend of $1.16 per share and has a dividend yield of 1.7%. Charles River Associates pays out 30.4% of its earnings in the form of a dividend. TriNet Group pays out 31.0% 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. Charles River Associates has raised its dividend for 7 consecutive years and TriNet Group has raised its dividend for 1 consecutive years.

Summary

Charles River Associates beats TriNet Group on 9 of the 16 factors compared between the two stocks.

About Charles River Associates

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CRA International, Inc., together with its subsidiaries, provides economic, financial, and management consulting services worldwide. It advises clients on economic and financial matters pertaining to litigation and regulatory proceedings; and guides corporations through business strategy and performance-related issues. The company also offers consulting services, including research and analysis, expert testimony, and support in litigation and regulatory proceedings in the areas of finance, accounting, economics, insurance, and forensic accounting and investigations to corporate clients and attorneys. In addition, it offers management consulting services comprising strategy development, performance improvement, corporate strategy and portfolio analysis, estimation of market demand, environmental, social and corporate governance and sustainability strategy and analysis, design and implementation of auction and bidding, new product pricing strategies, survey and market research, valuation of intellectual property and other assets, assessment of competitors’ actions, and analysis of new sources of supply. The company serves various industries, including communications and media; consumer, health, and wellness products; energy; entertainment and leisure; financial services; healthcare; life sciences; manufacturing and industries; natural resources; retail and distribution; technology; and transportation. CRA International, Inc. was incorporated in 1965 and is headquartered in Boston, Massachusetts.

About TriNet Group

(Get Free Report)

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.