Analyzing CDI Corporation (CDI) & Paychex (PAYX)
CDI Corporation (NYSE: CDI) and Paychex (NASDAQ:PAYX) are both construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
This table compares CDI Corporation and Paychex’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Paychex pays an annual dividend of $2.00 per share and has a dividend yield of 3.7%. CDI Corporation does not pay a dividend. CDI Corporation has raised its dividend for 6 consecutive years.
Valuation & Earnings
This table compares CDI Corporation and Paychex’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CDI Corporation||$761.18 million||0.20||-$9.24 million||($1.83)||-4.48|
|Paychex||$3.15 billion||6.19||$1.37 billion||N/A||N/A|
Paychex has higher revenue and earnings than CDI Corporation.
Insider and Institutional Ownership
46.2% of CDI Corporation shares are owned by institutional investors. Comparatively, 68.6% of Paychex shares are owned by institutional investors. 8.8% of CDI Corporation shares are owned by insiders. Comparatively, 11.6% of Paychex shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings for CDI Corporation and Paychex, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Paychex has a consensus target price of $59.16, indicating a potential upside of 9.07%. Given Paychex’s higher probable upside, analysts clearly believe Paychex is more favorable than CDI Corporation.
Volatility & Risk
CDI Corporation has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500. Comparatively, Paychex has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
Paychex beats CDI Corporation on 11 of the 13 factors compared between the two stocks.
CDI Corporation Company Profile
CDI Corp. provides engineering, information technology and staffing solutions. The Company operates in three segments: Global Engineering and Technology Solutions (GETS), Professional Staffing Services (PSS) and Management Recruiters International (MRI). It provides staffing services through its MRINetwork of franchisees. The GETS segment provides engineering and information technology solutions that involve the production of deliverable work products or services performed at its facility or at a customer’s facility. The PSS segment provides technical and professional personnel for discrete periods of time to augment the customer’s workforce in times of project, seasonal, peak period or business cycle needs. The MRI segment is a global franchisor that does business as MRINetwork and provides the use of its trademarks, business systems and training and support services to its franchisees. It serves the oil, gas and chemicals, aerospace and industrial equipment, and hi-tech industries.
Paychex Company Profile
Paychex, Inc. is a provider of integrated human capital management (HCM) solutions for payroll, human resource (HR), retirement and insurance services for small- to medium-sized businesses in the United States. The Company also has operations in Germany. The Company offers services, including Payroll processing, Human Resource Services, and Accounting and Financial Services. As of May 31, 2016, the Company serviced approximately 605,000 payroll clients. It offers a portfolio of HCM services and products that allows its clients to meet their payroll and HR needs. Its payroll-related ancillary services and human resource service (HRS) offerings often leverage the information gathered in the base payroll processing service, allowing it to provide outsourcing services covering the HCM spectrum. The Company, through its HCM software-as-a-service platform, Paychex Flex, provides an integrated product suite that covers the employee life cycle from recruiting and hiring to retirement.
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