Head-To-Head Analysis: CBIZ (NYSE:CBZ) versus Red Violet (NASDAQ:RDVT)

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

Earnings & Valuation

This table compares Red Violet and CBIZ”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Violet	$90.25 million	13.51	$13.15 million	$1.12	67.83
CBIZ	$2.76 billion	1.08	$115.44 million	$2.14	25.61

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.

Institutional and Insider Ownership

63.6% of Red Violet shares are owned by institutional investors. Comparatively, 87.4% of CBIZ shares are owned by institutional investors. 8.9% of Red Violet shares are owned by insiders. Comparatively, 4.1% of CBIZ shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Red Violet	16.54%	16.12%	14.77%
CBIZ	4.73%	12.33%	5.02%

Volatility & Risk

Red Violet has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Red Violet and CBIZ, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0	0	5	1	3.17
CBIZ	0	7	1	0	2.12

Red Violet presently has a consensus price target of $83.50, indicating a potential upside of 9.92%. CBIZ has a consensus price target of $44.50, indicating a potential downside of 18.82%. Given Red Violet’s stronger consensus rating and higher probable upside, equities analysts plainly believe Red Violet is more favorable than CBIZ.

Summary

Red Violet beats CBIZ on 11 of the 15 factors compared between the two stocks.

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.

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.