Flywire (NASDAQ:FLYW) versus CBIZ (NYSE:CBZ) Head to Head Review

CBIZ (NYSE:CBZ) and Flywire (NASDAQ:FLYW) are both mid-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Profitability

This table compares CBIZ and Flywire’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CBIZ	7.12%	14.88%	5.82%
Flywire	-2.63%	-1.56%	-1.20%

Volatility & Risk

CBIZ has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Flywire has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for CBIZ and Flywire, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBIZ	0	1	0	0	2.00
Flywire	0	3	12	1	2.88

CBIZ currently has a consensus target price of $63.00, suggesting a potential downside of 9.04%. Flywire has a consensus target price of $29.86, suggesting a potential upside of 65.87%. Given Flywire’s stronger consensus rating and higher probable upside, analysts clearly believe Flywire is more favorable than CBIZ.

Insider and Institutional Ownership

87.4% of CBIZ shares are held by institutional investors. Comparatively, 95.9% of Flywire shares are held by institutional investors. 5.4% of CBIZ shares are held by company insiders. Comparatively, 3.9% of Flywire shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares CBIZ and Flywire’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBIZ	$1.65 billion	2.10	$120.97 million	$2.47	28.04
Flywire	$422.84 million	5.29	-$8.57 million	($0.11)	-163.64

CBIZ has higher revenue and earnings than Flywire. Flywire is trading at a lower price-to-earnings ratio than CBIZ, indicating that it is currently the more affordable of the two stocks.

Summary

CBIZ beats Flywire on 8 of the 15 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 Flywire

Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company's platform facilitates payment flows across multiple currencies, payment types, and payment options, as well as provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. The company was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.