CBIZ (NYSE:CBZ) and Total System Services (NYSE:TSS) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.
Total System Services pays an annual dividend of $0.52 per share and has a dividend yield of 0.4%. CBIZ does not pay a dividend. Total System Services pays out 12.2% of its earnings in the form of a dividend. Total System Services has raised its dividend for 2 consecutive years.
This is a summary of current ratings for CBIZ and Total System Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Total System Services||0||6||11||0||2.65|
Total System Services has a consensus price target of $108.54, indicating a potential downside of 14.64%. Given Total System Services’ higher probable upside, analysts plainly believe Total System Services is more favorable than CBIZ.
Valuation & Earnings
This table compares CBIZ and Total System Services’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CBIZ||$922.00 million||1.16||$61.57 million||$1.09||17.82|
|Total System Services||$4.03 billion||5.60||$576.66 million||$4.26||29.85|
Total System Services has higher revenue and earnings than CBIZ. CBIZ is trading at a lower price-to-earnings ratio than Total System Services, indicating that it is currently the more affordable of the two stocks.
This table compares CBIZ and Total System Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Total System Services||14.63%||31.25%||10.44%|
Volatility & Risk
CBIZ has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Total System Services has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.
Insider & Institutional Ownership
87.2% of CBIZ shares are owned by institutional investors. Comparatively, 77.2% of Total System Services shares are owned by institutional investors. 7.4% of CBIZ shares are owned by insiders. Comparatively, 2.0% of Total System Services 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.
Total System Services beats CBIZ on 13 of the 17 factors compared between the two stocks.
CBIZ, Inc. provides professional business services, products, and solutions that help its clients in managing finances and employees. It offers its services through three groups: Financial Services, Benefits and Insurance Services, and National Practices. The Financial Services group provides accounting and tax, government healthcare consulting, financial advisory, valuation, and risk and advisory services. The Benefits and Insurance Services group offers group health benefits consulting, payroll, property and casualty, and retirement plan services. The National Practices group provides managed networking and hardware, and health care consulting services. The company primarily serves small and midsized businesses, as well as individuals, governmental entities, and not-for-profit enterprises in the United States and parts of Canada. CBIZ, Inc. was founded in 1987 and is headquartered in Cleveland, Ohio.
About Total System Services
Total System Services, Inc. provides payment processing, merchant, and related payment services to financial and nonfinancial institutions worldwide. The company operates through three segments: Issuer Solutions, Merchant Solutions, and Consumer Solutions. It offers general purpose reloadable prepaid and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers and businesses. The company also provides third party processing and related services for credit card issuers, merchant acquirers, independent sales organizations, and financial institutions; and issuer processing services, as well as operates as a prepaid program manager. Total System Services, Inc. was founded in 1982 and is headquartered in Columbus, Georgia.
Receive News & Ratings for CBIZ Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CBIZ and related companies with MarketBeat.com's FREE daily email newsletter.