Analyzing InterCloud Systems (OTCMKTS:ICLD) & TriNet Group (NYSE:TNET)

InterCloud Systems (OTCMKTS:ICLD) and TriNet Group (NYSE:TNET) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Institutional & Insider Ownership

96.8% of TriNet Group shares are held by institutional investors. 0.5% of InterCloud Systems shares are held by insiders. Comparatively, 37.1% of TriNet Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for InterCloud Systems and TriNet Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InterCloud Systems	0	0	0	0	N/A
TriNet Group	1	1	4	0	2.50

TriNet Group has a consensus target price of $118.40, suggesting a potential upside of 21.34%.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
InterCloud Systems	N/A	N/A	N/A
TriNet Group	6.29%	397.90%	9.19%

Risk & Volatility

InterCloud Systems has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500. Comparatively, TriNet Group has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Valuation and Earnings

This table compares InterCloud Systems and TriNet Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InterCloud Systems	N/A	N/A	N/A	N/A	N/A
TriNet Group	$4.92 billion	0.98	$375.00 million	$6.10	16.00

TriNet Group has higher revenue and earnings than InterCloud Systems.

Summary

TriNet Group beats InterCloud Systems on 7 of the 8 factors compared between the two stocks.

About InterCloud Systems

InterCloud Systems, Inc. provides networking orchestration and automation for software-defined networking (SDN) and network function virtualization environments to telecommunications service provider and corporate enterprise markets in the United States and internationally. It operates through two segments, Applications and Infrastructure and Professional Services. The Applications and Infrastructure segment provides applications and services, including SDN training, SDN software development and integration, and vertical network function validation; and cabling and other field installations, as well as designs, engineers, installs, and maintains various types of Wi-Fi and DAS networks to enterprise customers. The Professional Services segment engages in the design and deployment of SDN and software-defined wide area networking solutions for enterprise and carrier accounts. The company was incorporated in 1999 and is based in Boca Raton, Florida.

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.