TriNet Group (NYSE:TNET) vs. DoorDash (NASDAQ:DASH) Critical Review

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriNet Group	$4.92 billion	0.97	$375.00 million	$6.10	15.82
DoorDash	$9.61 billion	5.51	-$558.00 million	($1.08)	-119.86

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TriNet Group	6.29%	397.90%	9.19%
DoorDash	-4.24%	-6.00%	-3.78%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriNet Group	1	1	4	0	2.50
DoorDash	0	11	18	0	2.62

TriNet Group presently has a consensus target price of $118.40, suggesting a potential upside of 22.69%. DoorDash has a consensus target price of $141.93, suggesting a potential upside of 9.64%. Given TriNet Group’s higher possible upside, analysts plainly believe TriNet Group is more favorable than DoorDash.

Insider and Institutional Ownership

96.8% of TriNet Group shares are held by institutional investors. Comparatively, 90.6% of DoorDash shares are held by institutional investors. 37.1% of TriNet Group shares are held by insiders. Comparatively, 7.9% of DoorDash shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

TriNet Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, DoorDash has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

Summary

TriNet Group beats DoorDash on 9 of the 14 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 DoorDash

DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.