CBIZ (NYSE:CBZ – Get Free Report) and Resources Connection (NASDAQ:RGP – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Institutional and Insider Ownership
87.4% of CBIZ shares are owned by institutional investors. Comparatively, 93.2% of Resources Connection shares are owned by institutional investors. 4.1% of CBIZ shares are owned by company insiders. Comparatively, 5.5% of Resources Connection shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares CBIZ and Resources Connection”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CBIZ | $2.78 billion | 1.07 | $115.44 million | $2.45 | 22.44 |
| Resources Connection | $429.86 million | 0.22 | -$40.60 million | ($1.36) | -2.01 |
CBIZ has higher revenue and earnings than Resources Connection. Resources Connection is trading at a lower price-to-earnings ratio than CBIZ, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CBIZ and Resources Connection’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CBIZ | 5.33% | 12.74% | 5.19% |
| Resources Connection | -10.74% | -8.10% | -5.48% |
Volatility & Risk
CBIZ has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Resources Connection has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for CBIZ and Resources Connection, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CBIZ | 0 | 7 | 1 | 0 | 2.12 |
| Resources Connection | 1 | 1 | 0 | 0 | 1.50 |
CBIZ currently has a consensus target price of $44.50, indicating a potential downside of 19.06%. Given CBIZ’s stronger consensus rating and higher probable upside, research analysts clearly believe CBIZ is more favorable than Resources Connection.
Summary
CBIZ beats Resources Connection on 12 of the 14 factors compared between the two stocks.
About CBIZ
CBIZ, Inc. is a professional services company that provides financial, advisory, insurance and employee benefits services to businesses, individuals and organizations. Its offerings include accounting, tax preparation and planning, audit and assurance, and outsourced finance and business support. The company also provides consulting and advisory services, including valuation, transaction support and risk management, alongside commercial insurance and employee benefits solutions. Through its benefits and insurance services, CBIZ helps employers manage workplace programs and coverage needs.
About Resources Connection
Resources Connection, Inc. (NASDAQ:RGP) is a professional services and consulting company that helps organizations address complex business, operational and regulatory needs. Through its Resources Global Professionals business, the company provides project-based consultants and consulting solutions to clients across a range of corporate functions. Its services include accounting and finance, internal audit and risk management, compliance, legal and regulatory affairs, information technology, human resources, supply chain management, and other operational and business transformation initiatives.
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