Wageworks (NYSE: CBZ) and CBIZ (NYSE:CBZ) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Institutional and Insider Ownership
84.9% of CBIZ shares are owned by institutional investors. 3.5% of Wageworks shares are owned by insiders. Comparatively, 7.2% of CBIZ shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Wageworks and CBIZ’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wageworks||$364.71 million||5.74||$20.20 million||N/A||N/A|
|CBIZ||$855.34 million||1.49||$50.37 million||$0.87||26.55|
CBIZ has higher revenue and earnings than Wageworks.
This is a summary of recent ratings and recommmendations for Wageworks and CBIZ, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Wageworks currently has a consensus target price of $67.00, suggesting a potential upside of 26.89%. Given Wageworks’ higher probable upside, equities analysts clearly believe Wageworks is more favorable than CBIZ.
This table compares Wageworks and CBIZ’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Wageworks has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.
CBIZ beats Wageworks on 8 of the 13 factors compared between the two stocks.
WageWorks, Inc. engages in administering consumer-directed benefits (CDBs), which empower employees to save money on taxes, as well as provides corporate tax advantages for employers in the United States. It administers CDBs, including pre-tax spending accounts, such as health savings accounts (HSAs), health and dependent care flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs), as well as offers commuter benefit services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act, and other employee benefits. As of September 13, 2017, it had approximately 6.5 million employee participants from approximately 100,000 employer clients. WageWorks, Inc. was incorporated in 2000 and is headquartered in San Mateo, California.
CBIZ, Inc., through its subsidiaries, provides professional business services, products, and solutions in the United States and Canada. It offers its services through three practice groups: Financial Services, Benefits and Insurance Services, and National Practices. The Financial Services practice group provides accounting and tax compliance and consulting, government health care consulting, financial advisory, valuation, litigation support, risk and advisory, real estate consulting, and internal audit outsourcing services. The Benefits and Insurance Services practice group offers group health benefits consulting and brokerage, property and casualty brokerage, employee benefits consulting, retirement plan advisory, payroll, human capital advisory, actuarial, life insurance, and other services. The National Practices practice group provides managed networking and hardware, and health care consulting services. The company primarily serves small and midsized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. CBIZ, Inc. was founded in 1987 and is headquartered in Cleveland, Ohio.
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