Insperity (NSP) versus ASGN (ASGN) Critical Analysis

Insperity (NYSE: NSP) and ASGN (NYSE:ASGN) are both mid-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and target prices for Insperity and ASGN, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insperity 0 1 2 0 2.67
ASGN 0 1 6 0 2.86

Insperity currently has a consensus target price of $83.67, suggesting a potential downside of 12.11%. ASGN has a consensus target price of $79.83, suggesting a potential upside of 0.46%. Given ASGN’s stronger consensus rating and higher possible upside, analysts plainly believe ASGN is more favorable than Insperity.

Risk and Volatility

Insperity has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, ASGN has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.

Valuation and Earnings

This table compares Insperity and ASGN’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Insperity $3.30 billion 1.21 $84.40 million $2.04 46.67
ASGN $2.63 billion 1.58 $157.67 million $3.05 26.06

ASGN has lower revenue, but higher earnings than Insperity. ASGN is trading at a lower price-to-earnings ratio than Insperity, indicating that it is currently the more affordable of the two stocks.

Dividends

Insperity pays an annual dividend of $0.80 per share and has a dividend yield of 0.8%. ASGN does not pay a dividend. Insperity pays out 39.2% of its earnings in the form of a dividend. Insperity has increased its dividend for 6 consecutive years.

Profitability

This table compares Insperity and ASGN’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insperity 2.87% 122.34% 10.88%
ASGN 6.12% 17.99% 9.63%

Insider and Institutional Ownership

80.9% of Insperity shares are owned by institutional investors. Comparatively, 82.1% of ASGN shares are owned by institutional investors. 9.6% of Insperity shares are owned by company insiders. Comparatively, 3.9% of ASGN shares are owned 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.

Summary

ASGN beats Insperity on 10 of the 17 factors compared between the two stocks.

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.

ASGN Company Profile

ASGN Incorporated provides IT and professional services in the technology, digital, creative, healthcare technology, engineering, life sciences, and government sectors in the United States, Europe, and Canada. The company's Apex segment offers technical, digital, and creative and scientific professionals for contract, contract-to-hire, and permanent placement positions to Fortune 1000 and mid-market clients; IT staffing and consulting services comprising IT infrastructure, application development, project management, and healthcare IT professionals; and creative, marketing, advertising, and digital professionals. It also provides scientific, engineering, and clinical research staffing and services for temporary and permanent assignments, such as chemists, clinical research associates, clinical lab assistants, engineers, biologists, biochemists, microbiologists, molecular biologists, biostatisticians, drug safety specialists, SAS programmers, medical writers, food scientists, regulatory affairs specialists, lab assistants, and other skilled professionals. This segment serves companies from various industries, as well as advertising agencies and company marketing departments. Its Oxford segment recruits and delivers experienced IT, engineering, and regulatory and compliance consultants to clients for temporary assignments and project engagements; provides permanent placements in technology, engineering, sales, executive, financial, accounting, scientific, legal, and operations positions; and offers locally-based contract and permanent life science professionals to clients with research and development projects. The company's ECS segment delivers solutions in cloud, cybersecurity, software development, IT modernization, and science and engineering. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018. The company was founded in 1985 and is headquartered in Calabasas, California.

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