CBIZ (NYSE:CBZ – Get Free Report) and Kforce (NASDAQ:KFRC – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Volatility & Risk
CBIZ has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Kforce has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
Profitability
This table compares CBIZ and Kforce’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% |
| Kforce | 3.59% | 30.34% | 13.76% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CBIZ | 0 | 5 | 3 | 0 | 2.38 |
| Kforce | 0 | 3 | 2 | 0 | 2.40 |
CBIZ currently has a consensus target price of $44.50, indicating a potential downside of 18.41%. Kforce has a consensus target price of $60.67, indicating a potential upside of 4.67%. Given Kforce’s stronger consensus rating and higher possible upside, analysts clearly believe Kforce is more favorable than CBIZ.
Valuation and Earnings
This table compares CBIZ and Kforce”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CBIZ | $2.76 billion | 1.07 | $115.44 million | $2.14 | 25.49 |
| Kforce | $1.34 billion | 0.77 | $50.41 million | $2.12 | 27.34 |
CBIZ has higher revenue and earnings than Kforce. CBIZ is trading at a lower price-to-earnings ratio than Kforce, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
87.4% of CBIZ shares are owned by institutional investors. Comparatively, 92.8% of Kforce shares are owned by institutional investors. 4.1% of CBIZ shares are owned by insiders. Comparatively, 7.3% of Kforce shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
CBIZ beats Kforce on 8 of the 14 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 Kforce
Kforce Inc. provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security. This segment serves clients in various industries comprising financial and business services, communications, insurance, retail, and technology industries. The FA businesses segment offers talent solutions to its clients in areas, including financial planning and analysis, business intelligence analysis, general accounting, transactional accounting, business and cost analysis, and taxation and treasury. It also provides consultants in lower skilled areas comprising loan servicing and support, customer and call center support, data entry, and other administrative roles. This segment serves clients in various industries, including financial and business services, healthcare, and manufacturing sectors. The company was founded in 1962 and is headquartered in Tampa, Florida.
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