Critical Review: CBIZ (CBZ) vs. Exponent (EXPO)
CBIZ (NYSE: CBZ) and Exponent (NASDAQ:EXPO) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.
Exponent pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. CBIZ does not pay a dividend. Exponent pays out 41.0% of its earnings in the form of a dividend.
This table compares CBIZ and Exponent’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for CBIZ and Exponent, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Exponent has a consensus price target of $79.50, indicating a potential upside of 11.74%. Given Exponent’s higher probable upside, analysts plainly believe Exponent is more favorable than CBIZ.
Institutional and Insider Ownership
84.1% of CBIZ shares are owned by institutional investors. Comparatively, 88.6% of Exponent shares are owned by institutional investors. 6.9% of CBIZ shares are owned by insiders. Comparatively, 2.8% of Exponent shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares CBIZ and Exponent’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CBIZ||$799.83 million||1.08||$40.06 million||$0.82||19.15|
|Exponent||$315.08 million||5.83||$47.48 million||$2.05||34.71|
Exponent has lower revenue, but higher earnings than CBIZ. CBIZ is trading at a lower price-to-earnings ratio than Exponent, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CBIZ has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Exponent has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
Exponent beats CBIZ on 11 of the 15 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.
Exponent, Inc. (Exponent), along with its subsidiaries, is a science and engineering consulting company. Exponent provides engineering and scientific consulting services to clients around the world. Its service offerings are provided on a project-by-project basis. It operates in two segments: Engineering and Other Scientific, and Environmental and Health. Its Engineering and Other Scientific segment includes biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, thermal sciences and vehicle analysis services. Its Environmental and Health segment includes chemical regulation and food safety; ecological and biological sciences; environmental and earth sciences, and health sciences. Exponent serves clients in automotive, government, health, insurance, manufacturing and technology, among others.
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