Reviewing CBIZ (NYSE:CBZ) and Where Food Comes From (NASDAQ:WFCF)

Where Food Comes From (NASDAQ:WFCF) and CBIZ (NYSE:CBZ) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Insider & Institutional Ownership

18.8% of Where Food Comes From shares are owned by institutional investors. Comparatively, 87.4% of CBIZ shares are owned by institutional investors. 53.5% of Where Food Comes From shares are owned by insiders. Comparatively, 4.1% of CBIZ shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Where Food Comes From and CBIZ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Where Food Comes From	0	1	0	0	2.00
CBIZ	0	5	3	0	2.38

CBIZ has a consensus price target of $44.50, suggesting a potential downside of 18.75%. Given CBIZ’s stronger consensus rating and higher possible upside, analysts plainly believe CBIZ is more favorable than Where Food Comes From.

Profitability

This table compares Where Food Comes From and CBIZ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Where Food Comes From	5.78%	15.39%	10.24%
CBIZ	4.73%	12.33%	5.02%

Volatility & Risk

Where Food Comes From has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Earnings & Valuation

This table compares Where Food Comes From and CBIZ”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Where Food Comes From	$24.89 million	2.59	$1.54 million	$0.28	46.25
CBIZ	$2.76 billion	1.08	$115.44 million	$2.14	25.59

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

Summary

CBIZ beats Where Food Comes From on 8 of the 14 factors compared between the two stocks.

About Where Food Comes From

Where Food Comes From, Inc., together with its subsidiaries, operates as a third-party food verification company in North America. The company operates through Verification and Certification, and Professional Services segments. It conducts on-site and desk audits to verify that claims being made about livestock, food, other specialty crops, and agricultural and aquaculture products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education. It also offers professional services and technology solutions; verification solutions; and consulting services, as well as sells hardware. The company serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is based in Castle Rock, Colorado.

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.