Paychex (PAYX) & CDI Corporation (CDI) Head to Head Analysis
Paychex (NASDAQ: PAYX) and CDI Corporation (NYSE:CDI) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.
Earnings & Valuation
This table compares Paychex and CDI Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Paychex||$3.15 billion||6.19||$1.37 billion||N/A||N/A|
|CDI Corporation||$761.18 million||0.20||-$9.24 million||($1.83)||-4.48|
Paychex has higher revenue and earnings than CDI Corporation.
This table compares Paychex and CDI Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Paychex and CDI Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Paychex presently has a consensus target price of $59.16, indicating a potential upside of 9.07%. Given Paychex’s higher possible upside, analysts clearly believe Paychex is more favorable than CDI Corporation.
Volatility & Risk
Paychex has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, CDI Corporation has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500.
Institutional and Insider Ownership
68.6% of Paychex shares are owned by institutional investors. Comparatively, 46.2% of CDI Corporation shares are owned by institutional investors. 11.6% of Paychex shares are owned by insiders. Comparatively, 8.8% of CDI Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
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. Paychex has raised its dividend for 6 consecutive years.
Paychex beats CDI Corporation on 12 of the 13 factors compared between the two stocks.
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.
About CDI Corporation
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.
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