As the labor shortage issues are expected to continue, companies offering solutions in this space should witness high demand for their services, particularly in the holiday season. Staffing service providers TriNet Group (NYSE:TNET) and Automatic Data Processing (NASDAQ:ADP) should benefit from the rising demand for workers and payroll processing. But which of these two stocks is a better buy now? Read more to find out.TriNet Group, Inc. (TNET) provides human resources solutions for small and midsize businesses in the United States. The company offers multi-state payroll processing and tax administration, employee benefits programs, workers compensation insurance and claims management, and employment and benefits law compliance. On the other hand, Automatic Data Processing, Inc. (ADP) provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services, and Professional Employer Organization.
While the resurgence of COVID-19 cases and fears over the omicron coronavirus variant pose some degree of uncertainty, historically high job openings are leading to increasing demand for staffing & employment services companies. According to the U.S. Staffing Industry Forecast, U.S. staffing revenue will grow by 16% this year to a record total of $157.40 billion. Therefore, both TNET and ADP should benefit.
TNET has gained 34.3% over the past six months, while ADP has returned 17.1%. However, ADP’s 12.5% gains over the past three months are higher than TNET’s 5.9% returns. Moreover, ADP is the clear winner with 32.9% gains versus TNET’s 20% returns in terms of the past nine months’ performance.