Resources Connection (RECN) and CBIZ (CBZ) Financial Survey
CBIZ (NYSE: CBZ) and Resources Connection (NASDAQ:RECN) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitabiliy, institutional ownership and valuation.
Earnings and Valuation
This table compares CBIZ and Resources Connection’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CBIZ||$817.05 million||0.98||$92.33 million||$0.80||18.69|
|Resources Connection||$587.31 million||0.69||$46.28 million||$0.63||21.75|
CBIZ has higher revenue and earnings than Resources Connection. CBIZ is trading at a lower price-to-earnings ratio than Resources Connection, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for CBIZ and Resources Connection, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Resources Connection has a consensus target price of $12.00, indicating a potential downside of 12.41%. Given Resources Connection’s higher possible upside, analysts clearly believe Resources Connection is more favorable than CBIZ.
Resources Connection pays an annual dividend of $0.44 per share and has a dividend yield of 3.2%. CBIZ does not pay a dividend. Resources Connection pays out 69.8% of its earnings in the form of a dividend.
Volatility & Risk
CBIZ has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Resources Connection has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
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|
Insider & Institutional Ownership
85.0% of CBIZ shares are held by institutional investors. Comparatively, 85.0% of Resources Connection shares are held by institutional investors. 7.2% of CBIZ shares are held by company insiders. Comparatively, 8.6% of Resources Connection shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
CBIZ beats Resources Connection on 9 of the 16 factors compared between the two stocks.
CBIZ, Inc. (CBIZ) is engaged in the professional services business. The Company operates its professional services business through acquiring and integrating accounting and financial service providers, group health benefits consulting firms, property and casualty brokerage firms, payroll service providers, and valuation and other service firms throughout the United States. Its segments include Financial Services, Benefits and Insurance Services, National Practices, and Corporate and Other. The Financial Services group includes accounting and tax, government healthcare consulting, financial advisory, valuation, and risk and advisory services. The Benefits and Insurance Services group includes group health benefits consulting, payroll, property and casualty, and retirement plan services. The National Practices segment includes managed networking and hardware services, and healthcare consulting.
About Resources Connection
Resources Connection, Inc. is a multinational consulting firm. The Company’s operating entities primarily provide services under the name Resources Global Professionals (RGP). The Company provides consulting and business initiative support services to its global client base in the areas of accounting; finance; corporate governance, risk and compliance (GRC) management; corporate advisory, strategic communications and restructuring; information management; human capital; supply chain management, and legal and regulatory. The Company provides its services and solutions to a client base in a range of industries. Its finance and accounting services encompass accounting operations, financial reporting, internal controls, financial analyses and business transactions. It offers a range of technology solutions, which include enterprise resource planning systems; strategic front-of-the-house systems; human resources (HR) information systems, and supply chain management systems, among others.
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