Analyzing CBIZ (NYSE:CBZ) and Innodata (NASDAQ:INOD)

Innodata (NASDAQ:INOD) and CBIZ (NYSE:CBZ) are both mid-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Risk & Volatility

Innodata has a beta of 2.88, meaning that its stock price is 188% more volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Innodata and CBIZ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innodata	0	2	1	1	2.75
CBIZ	0	7	1	0	2.12

Innodata presently has a consensus target price of $130.00, suggesting a potential upside of 87.83%. CBIZ has a consensus target price of $44.50, suggesting a potential downside of 18.64%. Given Innodata’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Innodata is more favorable than CBIZ.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innodata	$251.66 million	9.45	$32.18 million	$1.32	52.43
CBIZ	$2.76 billion	1.08	$115.44 million	$2.14	25.56

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

Institutional & Insider Ownership

30.7% of Innodata shares are owned by institutional investors. Comparatively, 87.4% of CBIZ shares are owned by institutional investors. 11.8% of Innodata 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 company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Innodata	14.66%	37.79%	20.92%
CBIZ	4.73%	12.33%	5.02%

Summary

Innodata beats CBIZ on 10 of the 14 factors compared between the two stocks.

About Innodata

Innodata Inc. operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services. This segment also provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management. The Synodex segment offers an industry platform that transforms medical records into useable digital data with its proprietary data models or client data models. The Agility segment provides an industry platform that offers marketing communications and public relations professionals to target and distribute content to journalists and social media influencers; and to monitor and analyze global news channels, such as print, web, radio, and TV, as well as social media channels. It serves banking, insurance, financial services, technology, digital retailing, and information/media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen, Inc. and changed its name to Innodata Inc. in June 2012. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.

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.