Head to Head Survey: Resources Connection (NASDAQ:RGP) and CBIZ (NYSE:CBZ)

CBIZ (NYSE:CBZ) and Resources Connection (NASDAQ:RGP) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Valuation & Earnings

This table compares CBIZ and Resources Connection”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBIZ	$2.78 billion	1.07	$115.44 million	$2.45	22.44
Resources Connection	$429.86 million	0.22	-$40.60 million	($1.36)	-2.01

CBIZ has higher revenue and earnings than Resources Connection. Resources Connection 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 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Resources Connection has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Insider & Institutional Ownership

87.4% of CBIZ shares are held by institutional investors. Comparatively, 93.2% of Resources Connection shares are held by institutional investors. 4.1% of CBIZ shares are held by company insiders. Comparatively, 5.5% of Resources Connection shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for CBIZ and Resources Connection, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBIZ	0	7	1	0	2.12
Resources Connection	1	1	0	0	1.50

CBIZ currently has a consensus price target of $44.50, suggesting a potential downside of 19.06%. Given CBIZ’s stronger consensus rating and higher possible upside, analysts plainly believe CBIZ is more favorable than Resources Connection.

Profitability

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
CBIZ	5.33%	12.74%	5.19%
Resources Connection	-10.74%	-8.10%	-5.48%

Summary

CBIZ beats Resources Connection on 12 of the 14 factors compared between the two stocks.

About CBIZ

CBIZ, Inc. is a professional services company that provides financial, advisory, insurance and employee benefits services to businesses, individuals and organizations. Its offerings include accounting, tax preparation and planning, audit and assurance, and outsourced finance and business support. The company also provides consulting and advisory services, including valuation, transaction support and risk management, alongside commercial insurance and employee benefits solutions. Through its benefits and insurance services, CBIZ helps employers manage workplace programs and coverage needs.

About Resources Connection

Resources Connection, Inc. (NASDAQ:RGP) is a professional services and consulting company that helps organizations address complex business, operational and regulatory needs. Through its Resources Global Professionals business, the company provides project-based consultants and consulting solutions to clients across a range of corporate functions. Its services include accounting and finance, internal audit and risk management, compliance, legal and regulatory affairs, information technology, human resources, supply chain management, and other operational and business transformation initiatives.