CBIZ (NYSE:CBZ) vs. Resources Connection (NASDAQ:RGP) Head-To-Head Comparison

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

Institutional and Insider Ownership

93.2% of Resources Connection shares are owned by institutional investors. Comparatively, 87.4% of CBIZ shares are owned by institutional investors. 5.5% of Resources Connection shares are owned by company insiders. Comparatively, 4.1% of CBIZ shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Resources Connection	-10.74%	-8.10%	-5.48%
CBIZ	5.33%	12.74%	5.19%

Earnings and Valuation

This table compares Resources Connection and CBIZ”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resources Connection	$452.01 million	0.20	-$40.60 million	($1.36)	-1.96
CBIZ	$2.78 billion	1.07	$115.44 million	$2.45	22.44

CBIZ has higher revenue and earnings than Resources Connection. Resources Connection is trading at a lower price-to-earnings ratio than CBIZ, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Resources Connection and CBIZ, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resources Connection	1	1	0	0	1.50
CBIZ	0	7	1	0	2.12

CBIZ has a consensus price target of $44.50, indicating a potential downside of 19.06%. Given CBIZ’s stronger consensus rating and higher possible upside, analysts plainly believe CBIZ is more favorable than Resources Connection.

Risk & Volatility

Resources Connection has a beta of 0.56, indicating that its stock price is 44% less 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.

Summary

CBIZ beats Resources Connection on 12 of the 14 factors compared between the two stocks.

About Resources Connection

Resources Connection, Inc., which operates under the RGP brand, is a global consulting firm that helps organizations address business challenges and carry out transformation initiatives. Its services include finance and accounting, technology, risk and compliance, and business strategy and transformation. The company provides consulting teams and experienced professionals for project-based work, strategic initiatives, and periods of heightened demand. Its services support clients across industries as they improve operations, adopt new technologies, and manage organizational change.

About CBIZ

CBIZ, Inc. is a professional services company that provides financial, advisory, insurance and employee benefits services to businesses, individuals and organizations. Its offerings include accounting, tax preparation and planning, audit and assurance, and outsourced finance and business support. The company also provides consulting and advisory services, including valuation, transaction support and risk management, alongside commercial insurance and employee benefits solutions. Through its benefits and insurance services, CBIZ helps employers manage workplace programs and coverage needs.