CBIZ (CBZ) versus Fair Isaac (FICO) Head-To-Head Survey

CBIZ (NYSE: FICO) and Fair Isaac (NYSE:FICO) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Institutional & Insider Ownership

86.9% of CBIZ shares are owned by institutional investors. Comparatively, 88.4% of Fair Isaac shares are owned by institutional investors. 7.2% of CBIZ shares are owned by company insiders. Comparatively, 5.6% of Fair Isaac shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

CBIZ has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Fair Isaac has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
CBIZ 7.04% 10.99% 5.16%
Fair Isaac 13.12% 39.61% 11.53%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBIZ $855.34 million 1.53 $50.37 million $0.87 27.13
Fair Isaac $932.17 million 7.50 $128.25 million $3.98 60.31

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

Analyst Ratings

This is a summary of current ratings for CBIZ and Fair Isaac, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBIZ 0 0 1 0 3.00
Fair Isaac 0 2 1 0 2.33

Fair Isaac has a consensus price target of $201.33, indicating a potential downside of 16.12%. Given Fair Isaac’s higher possible upside, analysts plainly believe Fair Isaac is more favorable than CBIZ.

Summary

Fair Isaac beats CBIZ on 11 of the 13 factors compared between the two stocks.

About CBIZ

CBIZ, Inc., through its subsidiaries, provides professional business services, products, and solutions in the United States and Canada. It offers its services through three practice groups: Financial Services, Benefits and Insurance Services, and National Practices. The Financial Services practice group provides accounting and tax compliance and consulting, litigation support, federal and state governmental healthcare compliance, valuation services, real estate consulting, and internal audit outsourcing services. The Benefits and Insurance Services practice group offers group health benefits consulting and brokerage, property and casualty brokerage, employee benefits consulting, retirement plan advisory, payroll, human capital advisory, actuarial, life insurance, and other services. The National Practices practice group provides managed networking and hardware, and health care consulting services. The company primarily serves small and midsized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. CBIZ, Inc. was founded in 1987 and is headquartered in Cleveland, Ohio.

About Fair Isaac

Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions. The company offers analytical solutions, credit scoring, and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, healthcare organizations, and public agencies. It operates through three segments: Applications, Scores, and Decision Management Software. The Applications segment offers pre-configured decision management applications designed for various business problem or process, such as marketing, account origination, customer management, fraud, collection, and insurance claims management, as well as associated professional services. The Scores segment provides business-to-business scoring solutions and services, including myFICO solutions for consumers that give clients access to analytics to be integrated into their transaction streams and decision-making processes, as well as associated professional services. The Decision Management Software segment offers analytic and decision management software tools, as well as professional services. The company offers a portfolio of applications, tools, and services in the cloud to clients through its FICO Analytic Cloud, FICO Decision Management Suite, and FICO Decision Management Platform. Fair Isaac Corporation markets its products and services primarily through its direct sales organization; indirect channels; subsidiary sales organizations; and resellers and independent distributors, as well as online. It operates in the United States, the United Kingdom, and internationally. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in San Jose, California.

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