Kforce (NASDAQ:KFRC – Get Free Report) and CBIZ (NYSE:CBZ – 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 valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Kforce and CBIZ, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kforce | 0 | 3 | 2 | 0 | 2.40 |
| CBIZ | 0 | 5 | 3 | 0 | 2.38 |
Kforce currently has a consensus price target of $60.67, suggesting a potential upside of 12.89%. CBIZ has a consensus price target of $44.50, suggesting a potential downside of 18.71%. Given Kforce’s stronger consensus rating and higher probable upside, research analysts plainly believe Kforce is more favorable than CBIZ.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kforce | $1.34 billion | 0.72 | $50.41 million | $2.12 | 25.35 |
| CBIZ | $2.76 billion | 1.08 | $115.44 million | $2.14 | 25.58 |
CBIZ has higher revenue and earnings than Kforce. Kforce is trading at a lower price-to-earnings ratio than CBIZ, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
92.8% of Kforce shares are owned by institutional investors. Comparatively, 87.4% of CBIZ shares are owned by institutional investors. 7.3% of Kforce shares are owned by company insiders. Comparatively, 4.1% of CBIZ shares are owned 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.
Risk and Volatility
Kforce has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.
Profitability
This table compares Kforce and CBIZ’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kforce | 3.59% | 30.34% | 13.76% |
| CBIZ | 4.73% | 12.33% | 5.02% |
Summary
CBIZ beats Kforce on 8 of the 14 factors compared between the two stocks.
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.
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.
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