Critical Contrast: MOGU (NYSE:MOGU) vs. TriNet Group (NYSE:TNET)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for TriNet Group and MOGU, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriNet Group	1	2	4	0	2.43
MOGU	0	0	0	0	N/A

TriNet Group currently has a consensus price target of $117.50, suggesting a potential upside of 13.81%. Given TriNet Group’s higher probable upside, equities analysts plainly believe TriNet Group is more favorable than MOGU.

Earnings & Valuation

This table compares TriNet Group and MOGU’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriNet Group	$4.94 billion	1.06	$375.00 million	$6.10	16.93
MOGU	$33.79 million	0.48	-$25.92 million	N/A	N/A

TriNet Group has higher revenue and earnings than MOGU.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TriNet Group	6.78%	124.38%	10.24%
MOGU	N/A	N/A	N/A

Volatility & Risk

TriNet Group has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, MOGU has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Insider and Institutional Ownership

96.8% of TriNet Group shares are owned by institutional investors. Comparatively, 19.1% of MOGU shares are owned by institutional investors. 37.1% of TriNet Group shares are owned by company insiders. Comparatively, 19.8% of MOGU shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

TriNet Group beats MOGU on 11 of the 11 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 MOGU

MOGU Inc., through its subsidiaries, engages in the online fashion and lifestyle business in the People's Republic of China. The company operates an online platform that primarily offers a range of fashion apparel and other products, including beauty products and accessories provided by third party merchants, as well as personal care, food, and medical beauty products. It also provides online marketing, commission, financing, technology, and other related services to merchants, brand partners/owners, and users; and technology services to insurance companies. The company offers its products through mobile apps, including flagship Mogujie app, mini programs on Weixin, and Weixin pay; websites comprising Mogu.com, Mogujie.com and Meilishuo.com. The company was formerly known as Meili Inc. and changed its name to MOGU Inc. in November 2018. The company was incorporated in 2011 and is headquartered in Hangzhou, the People's Republic of China.