CBIZ (CBZ) versus Vectrus (VEC) Head-To-Head Analysis

Vectrus (NYSE: VEC) and CBIZ (NYSE:CBZ) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

84.3% of Vectrus shares are owned by institutional investors. Comparatively, 85.1% of CBIZ shares are owned by institutional investors. 3.9% of Vectrus shares are owned by insiders. Comparatively, 7.2% of CBIZ 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.

Analyst Recommendations

This is a summary of recent recommendations for Vectrus and CBIZ, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vectrus 0 1 1 0 2.50
CBIZ 0 0 0 0 N/A

Vectrus presently has a consensus target price of $22.00, suggesting a potential downside of 24.14%. Given Vectrus’ higher probable upside, equities analysts clearly believe Vectrus is more favorable than CBIZ.

Earnings & Valuation

This table compares Vectrus and CBIZ’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vectrus $1.12 billion 0.29 $45.00 million $1.90 15.26
CBIZ $831.05 million 0.95 $91.52 million $0.83 17.53

CBIZ has higher revenue, but lower earnings than Vectrus. Vectrus 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

Vectrus has a beta of 2.17, indicating that its stock price is 117% more volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Vectrus and CBIZ’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vectrus 2.06% 18.96% 5.04%
CBIZ 5.54% 9.42% 4.22%

Summary

Vectrus beats CBIZ on 7 of the 13 factors compared between the two stocks.

About Vectrus

Vectrus, Inc. is a provider of services to the United States Government across the world. The Company offers services, including infrastructure asset management, logistics and supply chain management, and information technology and network communication. Its infrastructure asset management services support the United States Army, Air Force and Navy, and include infrastructure services, security, warehouse management and distribution, ammunition management, civil engineering, air base maintenance and operations, communications, emergency services, transportation, and life support activities at various global military installations. Its logistics and supply chain management services support and maintain the vehicle and equipment stocks of the United States Army and Marine Corps. Its information technology and network communication services consist of sustainment of communications systems, network security, systems installation and life cycle management of information technology systems.

About CBIZ

CBIZ, Inc. (CBIZ) is engaged in the professional services business. The Company operates its professional services business through acquiring and integrating accounting and financial service providers, group health benefits consulting firms, property and casualty brokerage firms, payroll service providers, and valuation and other service firms throughout the United States. Its segments include Financial Services, Benefits and Insurance Services, National Practices, and Corporate and Other. The Financial Services group includes accounting and tax, government healthcare consulting, financial advisory, valuation, and risk and advisory services. The Benefits and Insurance Services group includes group health benefits consulting, payroll, property and casualty, and retirement plan services. The National Practices segment includes managed networking and hardware services, and healthcare consulting.

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