Insperity (NYSE:NSP) & Heidrick & Struggles International (NASDAQ:HSII) Head-To-Head Survey

Insperity (NYSE:NSP) and Heidrick & Struggles International (NASDAQ:HSII) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Volatility and Risk

Insperity has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Heidrick & Struggles International has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Insperity and Heidrick & Struggles International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insperity	1	1	1	0	2.00
Heidrick & Struggles International	0	1	1	0	2.50

Insperity presently has a consensus target price of $58.33, indicating a potential upside of 18.16%. Heidrick & Struggles International has a consensus target price of $51.00, indicating a potential upside of 3.93%. Given Insperity’s higher possible upside, equities research analysts clearly believe Insperity is more favorable than Heidrick & Struggles International.

Earnings and Valuation

This table compares Insperity and Heidrick & Struggles International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insperity	$6.58 billion	0.28	$91.00 million	$1.06	46.57
Heidrick & Struggles International	$1.12 billion	0.91	$8.73 million	$1.59	30.86

Insperity has higher revenue and earnings than Heidrick & Struggles International. Heidrick & Struggles International 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 $2.40 per share and has a dividend yield of 4.9%. Heidrick & Struggles International pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Insperity pays out 226.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Heidrick & Struggles International pays out 37.7% of its earnings in the form of a dividend. Insperity has increased its dividend for 14 consecutive years. Insperity is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

93.4% of Insperity shares are owned by institutional investors. Comparatively, 90.1% of Heidrick & Struggles International shares are owned by institutional investors. 5.3% of Insperity shares are owned by company insiders. Comparatively, 1.4% of Heidrick & Struggles International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Insperity and Heidrick & Struggles International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insperity	0.60%	35.32%	1.84%
Heidrick & Struggles International	2.92%	14.85%	6.24%

Summary

Insperity beats Heidrick & Struggles International on 9 of the 16 factors compared between the two stocks.

About Insperity

Insperity, Inc. engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses primarily in the United States. It offers its HR services through its workforce optimization and workforce synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services. The company also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; people management services; and employer liability management services, as well as solutions for middle market. In addition, it offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; integrated payroll; benefits administration; HR administration and employee onboarding; time and attendance; performance management; reporting and analytics; recruiting; employment screening; retirement; and insurance services. 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.

About Heidrick & Struggles International

Heidrick & Struggles International, Inc. engages in provision of leadership consulting, culture shaping and senior-level executive search services. It offers its clients build leadership teams through facilitating the recruitment, management and deployment of senior executives. It operates under the following segments: Americas, Europe, Asia Pacific, Heidrick Consulting, and On Demand Talent Business. The company was founded by Gardner Heidrick and John Struggles in 1953 and is headquartered in Chicago, IL.