Head to Head Analysis: CBIZ (CBZ) and ServiceMaster Global Holdings (SERV)
CBIZ (NYSE: CBZ) and ServiceMaster Global Holdings (NYSE:SERV) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.
Risk and Volatility
CBIZ has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, ServiceMaster Global Holdings has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Institutional & Insider Ownership
85.6% of CBIZ shares are owned by institutional investors. 6.9% of CBIZ shares are owned by insiders. Comparatively, 1.2% of ServiceMaster Global Holdings 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 breakdown of current ratings and recommmendations for CBIZ and ServiceMaster Global Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ServiceMaster Global Holdings||2||0||5||0||2.43|
ServiceMaster Global Holdings has a consensus price target of $43.57, suggesting a potential downside of 6.86%. Given ServiceMaster Global Holdings’ higher probable upside, analysts plainly believe ServiceMaster Global Holdings is more favorable than CBIZ.
This table compares CBIZ and ServiceMaster Global Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ServiceMaster Global Holdings||7.92%||40.74%||5.17%|
Earnings and Valuation
This table compares CBIZ and ServiceMaster Global Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CBIZ||$831.05 million||0.99||$91.52 million||$0.83||18.25|
|ServiceMaster Global Holdings||$2.84 billion||2.20||$665.00 million||$1.66||28.18|
ServiceMaster Global Holdings has higher revenue and earnings than CBIZ. CBIZ is trading at a lower price-to-earnings ratio than ServiceMaster Global Holdings, indicating that it is currently the more affordable of the two stocks.
ServiceMaster Global Holdings beats CBIZ on 11 of the 13 factors compared between the two stocks.
CBIZ, Inc. (CBIZ) is engaged in the professional services business. The Company operates its professional services business through acquiring and integrating accounting and financial service providers, group health benefits consulting firms, property and casualty brokerage firms, payroll service providers, and valuation and other service firms throughout the United States. Its segments include Financial Services, Benefits and Insurance Services, National Practices, and Corporate and Other. The Financial Services group includes accounting and tax, government healthcare consulting, financial advisory, valuation, and risk and advisory services. The Benefits and Insurance Services group includes group health benefits consulting, payroll, property and casualty, and retirement plan services. The National Practices segment includes managed networking and hardware services, and healthcare consulting.
About ServiceMaster Global Holdings
ServiceMaster Global Holdings, Inc. is a provider of essential residential and commercial services. The Company operates through three segments: Terminix, American Home Shield and the Franchise Services Group. Its portfolio of brands includes Terminix, American Home Shield, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. The Terminix segment provides termite and pest control services in the United States. The American Home Shield segment provides home warranty plans that cover the repair or replacement of components of up to 21 household systems and appliances, including electrical, plumbing, central heating and air conditioning (HVAC) systems, dishwashers and ovens/cook tops. The Franchise Services Group segment consists of the ServiceMaster Restore (disaster restoration), ServiceMaster Clean (janitorial), Merry Maids (residential cleaning), Furniture Medic (cabinet and wood furniture repair) and AmeriSpec (home inspection) businesses.
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