CBIZ (NYSE:CBZ – Get Free Report) and Flywire (NASDAQ:FLYW – Get Free Report) 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
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.
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