Insperity (NYSE:NSP) and Where Food Comes From (NASDAQ:WFCF) Head-To-Head Contrast

Where Food Comes From (NASDAQ:WFCF) and Insperity (NYSE:NSP) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Institutional and Insider Ownership

18.8% of Where Food Comes From shares are held by institutional investors. Comparatively, 93.4% of Insperity shares are held by institutional investors. 53.5% of Where Food Comes From shares are held by company insiders. Comparatively, 5.8% of Insperity shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Where Food Comes From and Insperity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Where Food Comes From	5.78%	15.39%	10.24%
Insperity	-0.23%	-19.99%	-0.60%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Where Food Comes From and Insperity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Where Food Comes From	0	1	0	0	2.00
Insperity	2	2	1	0	1.80

Insperity has a consensus price target of $53.33, suggesting a potential upside of 3.91%. Given Insperity’s higher possible upside, analysts plainly believe Insperity is more favorable than Where Food Comes From.

Earnings and Valuation

This table compares Where Food Comes From and Insperity”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Where Food Comes From	$24.89 million	2.79	$1.54 million	$0.28	49.82
Insperity	$6.81 billion	0.29	-$7.00 million	($0.43)	-119.36

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

Volatility & Risk

Where Food Comes From has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, Insperity has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Summary

Where Food Comes From beats Insperity on 9 of the 14 factors compared between the two stocks.

About Where Food Comes From

Where Food Comes From, Inc., together with its subsidiaries, operates as a third-party food verification company in North America. The company operates through Verification and Certification, and Professional Services segments. It conducts on-site and desk audits to verify that claims being made about livestock, food, other specialty crops, and agricultural and aquaculture products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education. It also offers professional services and technology solutions; verification solutions; and consulting services, as well as sells hardware. The company serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is based in Castle Rock, Colorado.

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.