CBIZ (NYSE:CBZ – Get Free Report) and Labor Smart (OTCMKTS:LTNC – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Profitability
This table compares CBIZ and Labor Smart’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CBIZ | 4.73% | 12.33% | 5.02% |
| Labor Smart | N/A | N/A | N/A |
Valuation & Earnings
This table compares CBIZ and Labor Smart”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CBIZ | $2.76 billion | 1.07 | $115.44 million | $2.14 | 25.45 |
| Labor Smart | N/A | N/A | N/A | ($0.02) | -0.01 |
CBIZ has higher revenue and earnings than Labor Smart. Labor Smart is trading at a lower price-to-earnings ratio than CBIZ, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
CBIZ has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Labor Smart has a beta of -0.47, meaning that its share price is 147% less volatile than the S&P 500.
Institutional & Insider Ownership
87.4% of CBIZ shares are owned by institutional investors. 4.1% of CBIZ shares are owned by insiders. Comparatively, 8.1% of Labor Smart shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and recommmendations for CBIZ and Labor Smart, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CBIZ | 0 | 5 | 3 | 0 | 2.38 |
| Labor Smart | 0 | 0 | 0 | 0 | 0.00 |
CBIZ currently has a consensus price target of $44.50, indicating a potential downside of 18.29%. Given CBIZ’s stronger consensus rating and higher probable upside, research analysts clearly believe CBIZ is more favorable than Labor Smart.
Summary
CBIZ beats Labor Smart on 11 of the 12 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 Labor Smart
Labor Smart, Inc. engages in providing temporary blue-collar staffing services. It supplies general laborers on demand to the light industries, including manufacturing, logistics, and warehousing, skilled trade’s people and general laborers to commercial construction industries. The company was founded by Christopher Ryan Schadel on May 31, 2011 and is headquartered in Powder Springs, GA.
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