CBIZ (NYSE:CBZ – Get Free Report) and Fiserv (NYSE:FI – Get Free Report) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Profitability
This table compares CBIZ and Fiserv’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CBIZ | 7.60% | 15.49% | 5.92% |
Fiserv | 16.07% | 15.16% | 5.63% |
Analyst Ratings
This is a summary of current ratings and price targets for CBIZ and Fiserv, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CBIZ | 0 | 1 | 0 | 0 | 2.00 |
Fiserv | 0 | 6 | 17 | 0 | 2.74 |
Risk & Volatility
CBIZ has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Earnings & Valuation
This table compares CBIZ and Fiserv’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CBIZ | $1.59 billion | 2.46 | $120.97 million | $2.38 | 32.81 |
Fiserv | $19.09 billion | 4.79 | $3.07 billion | $5.00 | 31.08 |
Fiserv has higher revenue and earnings than CBIZ. Fiserv is trading at a lower price-to-earnings ratio than CBIZ, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
87.4% of CBIZ shares are held by institutional investors. Comparatively, 91.0% of Fiserv shares are held by institutional investors. 5.3% of CBIZ shares are held by insiders. Comparatively, 0.8% of Fiserv shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Fiserv beats CBIZ on 10 of the 14 factors compared between the two stocks.
About CBIZ
CBIZ, Inc. provides financial, insurance, and advisory services in the United States and Canada. It operates through Financial Services, Benefits and Insurance Services, and National Practices segments. The Financial Services segment offers accounting and tax, financial advisory, valuation, risk and advisory, and government healthcare consulting services. The Benefits and Insurance Services provides employee benefits consulting, payroll/human capital management, property and casualty insurance, and retirement and investment services. The National Practices segment offers information technology managed networking and hardware, and health care consulting services. The company primarily serves small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. CBIZ, Inc. was incorporated in 1987 and is headquartered in Independence, Ohio.
About Fiserv
Fiserv, Inc., together with its subsidiaries, provides payments and financial services technology services in the United States, Europe, the Middle East and Africa, Latin America, the Asia-Pacific, and internationally. It operates through Merchant Acceptance, Financial Technology, and Payments and Network segments. The Merchant Acceptance segment provides merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Clover, a cloud based POS and integrated commerce operating system for small and mid-sized businesses and independent software vendors; and Carat, an integrated operating system for large businesses. This segment distributes through various channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions, and other strategic partners in the form of joint venture alliances, revenue sharing alliances, and referral agreement. The Financial Technology segment offers customer deposit and loan accounts, as well as manages an institution's general ledger and central information files. This segment also provides digital banking, financial and risk management, professional services and consulting, check processing, and other products and services. The Payments and Network segment offers card transactions, such as debit, credit, and prepaid card processing and services; funds access, debit payments, cardless ATM access, and surcharge-free ATM network; security and fraud protection products; card production; print services; and various network services, as well as non-card digital payment software and services, including bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products. It serves merchants, banks, credit unions, other financial institutions, and corporate clients. Fiserv, Inc. was incorporated in 1984 and is headquartered in Milwaukee, Wisconsin.
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