CBIZ (NYSE: CBZ) and Viad (NYSE:VVI) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Dividends

Viad pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. CBIZ does not pay a dividend. Viad pays out 15.3% of its earnings in the form of a dividend.

Profitability

This table compares CBIZ and Viad’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%
Viad 2.95% 8.16% 3.88%

Institutional and Insider Ownership

85.6% of CBIZ shares are held by institutional investors. Comparatively, 87.2% of Viad shares are held by institutional investors. 7.2% of CBIZ shares are held by insiders. Comparatively, 2.0% of Viad shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

CBIZ has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Viad has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Earnings and Valuation

This table compares CBIZ and Viad’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 1.46 $50.37 million $0.87 25.98
Viad $1.31 billion 0.92 $57.70 million $2.62 22.58

Viad has higher revenue and earnings than CBIZ. Viad 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 summary of current recommendations for CBIZ and Viad, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBIZ 0 0 1 0 3.00
Viad 0 1 0 0 2.00

Summary

CBIZ beats Viad on 9 of the 15 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, government health care consulting, financial advisory, valuation, litigation support, risk and advisory, 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 Viad

Viad Corp operates as an experiential services company in the United States, Canada, the United Kingdom, continental Europe, and the United Arab Emirates. The company operates in two business groups, GES and Pursuit. It offers event planning and production, look and feel design, layout and floor plan designs, furnishings and carpet, show traffic analysis, marketing and strategy, electrical distribution, cleaning, plumbing, overhead and booth rigging, and material handling services; and signage products and common area structures. The company also provides creative design and strategy, integrated marketing and pre/post event communications, event surveys, return on investment analysis, online management tools, attendee/exhibit booth traffic analysis, staff training, logistics/transportation, storage/refurbishment of exhibits, installation and dismantling labor, and tradeshow program management services. In addition, it offers custom exhibit design/construction, portable/modular exhibits and design, and graphics and signage products; event technology services, including event accommodation solutions, registration and data analytics, and event management tools; and audio-visual services, such as video and lighting production, digital studio, entertainment and talent coordination, projection mapping, and computer rental and support services. Further, the company owns and operates hotels and lodges, and recreational attractions; provides ground transportation services comprising sightseeing tour, airport shuttle, and seasonal charter motor coach services; and operates Poken event engagement, a cloud-based visitor engagement and measurement platform, as well as offers corporate and event management services for meetings, conferences, incentive travel, sports, and special events. Viad Corp was founded in 1914 and is headquartered in Phoenix, Arizona.

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