Head to Head Survey: CBIZ (NYSE:CBZ) vs. Radware (NASDAQ:RDWR)

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

Institutional & Insider Ownership

87.4% of CBIZ shares are held by institutional investors. Comparatively, 73.1% of Radware shares are held by institutional investors. 5.3% of CBIZ shares are held by company insiders. Comparatively, 21.6% of Radware shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares CBIZ and Radware’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBIZ	$1.59 billion	2.35	$120.97 million	$2.38	31.30
Radware	$261.29 million	2.79	-$21.59 million	($0.50)	-32.90

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

Risk and Volatility

CBIZ has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Radware has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for CBIZ and Radware, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBIZ	0	1	0	0	2.00
Radware	0	0	1	0	3.00

CBIZ presently has a consensus price target of $63.00, indicating a potential downside of 15.44%. Radware has a consensus price target of $22.00, indicating a potential upside of 33.74%. Given Radware’s stronger consensus rating and higher probable upside, analysts plainly believe Radware is more favorable than CBIZ.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CBIZ	7.60%	15.49%	5.92%
Radware	-8.26%	-2.88%	-1.64%

Summary

CBIZ beats Radware 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 Radware

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers worldwide. The company operates in two segments, Radware's Core Business and The Hawks' Business. It offers DefensePro provides automated DDoS protection; Radware Kubernetes, a web application firewall solution; and Cyber Controller, a unified solution for management, configuration, and attack lifecycle. The company also provides Alteon, an application delivery and security solution that manages application traffic across cloud and data center locations for optimizing availability and performance; and LinkProof NG, a multi-homing and enterprise gateway solution. In addition, it offers ERT Security Updates Subscription that provides protection from network elements, hosts, and applications; ERT Active Attackers Feed, a threat intelligence feed to protect against DDoS threats; ERT Protection Packages; Alteon Global Elastic License, a purchasing and deployment subscription; MSSP Portal, a DDoS detection and mitigation service portal; Location-based Mitigation that enables network traffic based on the geolocation mapping of IP subnets; and Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud. Further, the company provides Cloud Web DDoS Protection, Cloud WAF Service, Bot Manager, Cloud-Native Protector, and Cloud Application Protection Services, as well as technical support, professional, managed, and training and certification services. It sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. The company was founded in 1996 and is headquartered in Tel Aviv, Israel.