CBIZ (NYSE:CBZ) vs. Red Violet (NASDAQ:RDVT) Head-To-Head Review
by Kim Johansen · The Markets DailyCBIZ (NYSE:CBZ – Get Free Report) and Red Violet (NASDAQ:RDVT – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of recent recommendations and price targets for CBIZ and Red Violet, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CBIZ | 0 | 7 | 1 | 0 | 2.12 |
| Red Violet | 0 | 1 | 5 | 0 | 2.83 |
CBIZ presently has a consensus price target of $44.50, indicating a potential downside of 18.98%. Red Violet has a consensus price target of $83.50, indicating a potential upside of 3.34%. Given Red Violet’s stronger consensus rating and higher possible upside, analysts clearly believe Red Violet is more favorable than CBIZ.
Profitability
This table compares CBIZ and Red Violet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CBIZ | 5.33% | 12.85% | 5.21% |
| Red Violet | 16.54% | 16.12% | 14.77% |
Valuation and Earnings
This table compares CBIZ and Red Violet”s gross revenue, earnings per share 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 | 22.42 |
| Red Violet | $90.25 million | 14.37 | $13.15 million | $1.12 | 72.14 |
CBIZ has higher revenue and earnings than Red Violet. CBIZ is trading at a lower price-to-earnings ratio than Red Violet, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CBIZ has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Red Violet has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.
Institutional and Insider Ownership
87.4% of CBIZ shares are owned by institutional investors. Comparatively, 63.6% of Red Violet shares are owned by institutional investors. 4.1% of CBIZ shares are owned by insiders. Comparatively, 8.9% of Red Violet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Red Violet beats CBIZ on 10 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 Red Violet
Red Violet, Inc., a software and services company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, fraud detection and prevention, customer acquisition, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, telecommunication companies, law enforcement and government agencies, collections, law, corporate security, and investigative firms. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. The company was incorporated in 2017 and is headquartered in Boca Raton, Florida.