Kforce (NASDAQ:KFRC) & CBIZ (NYSE:CBZ) Financial Review

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

Earnings and Valuation

This table compares CBIZ and Kforce”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBIZ	$2.77 billion	1.08	$115.44 million	$2.14	25.64
Kforce	$1.34 billion	0.73	$50.41 million	$2.12	25.67

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.

Institutional & Insider 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 company insiders. Comparatively, 7.3% of Kforce shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for CBIZ and Kforce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBIZ	0	5	2	0	2.29
Kforce	0	3	2	0	2.40

CBIZ currently has a consensus target price of $44.50, suggesting a potential downside of 18.88%. Kforce has a consensus target price of $60.67, suggesting a potential upside of 11.46%. Given Kforce’s stronger consensus rating and higher probable upside, analysts plainly believe Kforce is more favorable than CBIZ.

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%

Risk and Volatility

CBIZ has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Kforce has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Summary

CBIZ beats Kforce on 7 of the 13 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.