Contrasting CBIZ (NYSE:CBZ) & Experian (OTCMKTS:EXPGF)

Experian (OTCMKTS:EXPGF) and CBIZ (NYSE:CBZ) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Insider & Institutional Ownership

41.0% of Experian shares are owned by institutional investors. Comparatively, 87.4% of CBIZ shares are owned by institutional investors. 4.1% of CBIZ shares are owned by company 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.

Earnings and Valuation

This table compares Experian and CBIZ”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Experian	N/A	N/A	N/A	$0.84	49.10
CBIZ	$2.76 billion	1.08	$115.44 million	$2.14	25.55

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Experian and CBIZ, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Experian	0	0	0	0	0.00
CBIZ	0	5	3	0	2.38

CBIZ has a consensus target price of $44.50, suggesting a potential downside of 18.60%. Given CBIZ’s stronger consensus rating and higher probable upside, analysts clearly believe CBIZ is more favorable than Experian.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Experian	N/A	N/A	N/A
CBIZ	4.73%	12.33%	5.02%

Summary

CBIZ beats Experian on 10 of the 11 factors compared between the two stocks.

About Experian

Experian plc, together with its subsidiaries, operates as a technology company in North America, Latin America, the United Kingdom, Ireland, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Business-to-Business and Consumer Services. The company collects, sorts, aggregates, and transforms data from various sources to provide a range of data-driven services. It also owns, create, and develops analytics, predictive tools, sophisticated software, and platforms; credit risk, fraud prevention, identity management, customer service and engagement, account processing, and account management services; data analysis, and research and development services. In addition, the company provides credit education, free access to Experian credit reports and scores, and online educational tools. It serves its customers in financial service, direct-to-consumer, health, retail, automotive, software and professional services, telecoms and utility, insurance, media and technology, and other industries, as well as government and public sectors. The company was formerly known as Experian Group Limited and changed its name to Experian plc in July 2008. Experian plc was founded in 1826 and is headquartered in Dublin, Ireland.

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.