Comparing Where Food Comes From (NASDAQ:WFCF) & Insperity (NYSE:NSP)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insperity	$6.87 billion	0.30	-$7.00 million	($0.43)	-126.89
Where Food Comes From	$25.03 million	3.00	$1.54 million	$0.28	53.77

Where Food Comes From has lower revenue, but higher earnings 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.

Insider & Institutional Ownership

93.4% of Insperity shares are owned by institutional investors. Comparatively, 18.8% of Where Food Comes From shares are owned by institutional investors. 5.8% of Insperity shares are owned by company insiders. Comparatively, 53.5% of Where Food Comes From shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Insperity and Where Food Comes From, as provided by MarketBeat.

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

Insperity presently has a consensus price target of $53.33, suggesting a potential downside of 2.25%. Given Insperity’s higher probable upside, equities analysts plainly believe Insperity is more favorable than Where Food Comes From.

Profitability

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

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

Summary

Where Food Comes From beats Insperity on 9 of the 14 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 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.