Insperity (NYSE:NSP) vs. TIC Solutions (NYSE:TIC) Critical Contrast

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

Volatility and Risk

TIC Solutions has a beta of 3, meaning that its share price is 200% more 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.

Institutional and Insider Ownership

93.4% of Insperity shares are owned by institutional investors. 11.4% of TIC Solutions shares are owned by company insiders. Comparatively, 5.8% of Insperity shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for TIC Solutions and Insperity, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TIC Solutions	1	2	3	0	2.33
Insperity	2	2	1	0	1.80

TIC Solutions presently has a consensus price target of $12.00, indicating a potential upside of 33.29%. Insperity has a consensus price target of $53.33, indicating a potential upside of 8.87%. Given TIC Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe TIC Solutions is more favorable than Insperity.

Valuation & Earnings

This table compares TIC Solutions and Insperity”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TIC Solutions	$1.53 billion	1.28	-$87.12 million	($0.58)	-15.52
Insperity	$6.87 billion	0.27	-$7.00 million	($0.43)	-113.93

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TIC Solutions	-5.64%	-2.30%	-1.11%
Insperity	-0.23%	-19.99%	-0.60%

Summary

TIC Solutions beats Insperity on 8 of the 14 factors compared between the two stocks.

About TIC Solutions

Acuren Corporation provides critical asset integrity services in North America. Its activities include various nondestructive testing (NDT) solutions, such as radiography, ultrasonic testing, magnetic particle inspection, penetrant testing, and visual inspection. Its NDT activities include inspection and evaluation of industrial equipment through various technology-enabled methods to ensure asset integrity, avoid accidents, and comply with regulatory requirements without destroying the asset or component. The company also provides market rope access technician solutions, including inspection and testing, as well as insulation, coatings and blasting, welding, pipe fitting, hoisting and rigging, and electrical services. In addition, its TIC service includes support from consulting engineers with in-lab destructive testing capabilities. The company provides support failure investigation, material selection, corrosion engineering, welding engineering, fracture mechanics, destructive testing, and chemical analysis. It serves a range of industrial markets, primarily chemical, pipeline, refinery, power generation, oilsands, automotive, aerospace, mining, manufacturing, renewable energy, and pulp and paper. The company was founded in 1991 and is headquartered in Tomball, Texas.

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.