Head-To-Head Contrast: Fiserv (NYSE:FI) and CBIZ (NYSE:CBZ)

Fiserv (NYSE:FI) and CBIZ (NYSE:CBZ) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Profitability

This table compares Fiserv and CBIZ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fiserv	16.07%	15.16%	5.63%
CBIZ	7.60%	15.49%	5.92%

Valuation and Earnings

This table compares Fiserv and CBIZ’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fiserv	$19.09 billion	4.79	$3.07 billion	$5.00	31.08
CBIZ	$1.59 billion	2.46	$120.97 million	$2.38	32.81

Fiserv has higher revenue and earnings than CBIZ. Fiserv is trading at a lower price-to-earnings ratio than CBIZ, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Fiserv and CBIZ, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fiserv	0	6	17	0	2.74
CBIZ	0	1	0	0	2.00

Fiserv currently has a consensus target price of $157.79, indicating a potential upside of 1.55%. CBIZ has a consensus target price of $63.00, indicating a potential downside of 19.32%. Given Fiserv’s stronger consensus rating and higher possible upside, analysts plainly believe Fiserv is more favorable than CBIZ.

Insider & Institutional Ownership

91.0% of Fiserv shares are held by institutional investors. Comparatively, 87.4% of CBIZ shares are held by institutional investors. 0.8% of Fiserv shares are held by company insiders. Comparatively, 5.3% of CBIZ 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.

Volatility & Risk

Fiserv has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Summary

Fiserv beats CBIZ on 10 of the 14 factors compared between the two stocks.

About Fiserv

Fiserv, Inc., together with its subsidiaries, provides payments and financial services technology services in the United States, Europe, the Middle East and Africa, Latin America, the Asia-Pacific, and internationally. It operates through Merchant Acceptance, Financial Technology, and Payments and Network segments. The Merchant Acceptance segment provides merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Clover, a cloud based POS and integrated commerce operating system for small and mid-sized businesses and independent software vendors; and Carat, an integrated operating system for large businesses. This segment distributes through various channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions, and other strategic partners in the form of joint venture alliances, revenue sharing alliances, and referral agreement. The Financial Technology segment offers customer deposit and loan accounts, as well as manages an institution's general ledger and central information files. This segment also provides digital banking, financial and risk management, professional services and consulting, check processing, and other products and services. The Payments and Network segment offers card transactions, such as debit, credit, and prepaid card processing and services; funds access, debit payments, cardless ATM access, and surcharge-free ATM network; security and fraud protection products; card production; print services; and various network services, as well as non-card digital payment software and services, including bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products. It serves merchants, banks, credit unions, other financial institutions, and corporate clients. Fiserv, Inc. was incorporated in 1984 and is headquartered in Milwaukee, Wisconsin.

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.