Critical Review: Radware (NASDAQ:RDWR) vs. CBIZ (NYSE:CBZ)

Radware (NASDAQ:RDWR) and CBIZ (NYSE:CBZ) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for Radware and CBIZ, as reported by MarketBeat.com.

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

Radware presently has a consensus target price of $22.00, suggesting a potential upside of 36.31%. CBIZ has a consensus target price of $63.00, suggesting a potential downside of 14.53%. Given Radware’s stronger consensus rating and higher probable upside, equities analysts clearly believe Radware is more favorable than CBIZ.

Insider and Institutional Ownership

73.1% of Radware shares are owned by institutional investors. Comparatively, 87.4% of CBIZ shares are owned by institutional investors. 21.6% of Radware shares are owned by company insiders. Comparatively, 5.3% of CBIZ shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Radware 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
Radware	$261.29 million	2.74	-$21.59 million	($0.50)	-32.28
CBIZ	$1.59 billion	2.32	$120.97 million	$2.38	30.97

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

Risk & Volatility

Radware has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Radware	-8.26%	-2.88%	-1.64%
CBIZ	7.60%	15.49%	5.92%

Summary

CBIZ beats Radware on 8 of the 14 factors compared between the two stocks.

About Radware

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers worldwide. The company operates in two segments, Radware's Core Business and The Hawks' Business. It offers DefensePro provides automated DDoS protection; Radware Kubernetes, a web application firewall solution; and Cyber Controller, a unified solution for management, configuration, and attack lifecycle. The company also provides Alteon, an application delivery and security solution that manages application traffic across cloud and data center locations for optimizing availability and performance; and LinkProof NG, a multi-homing and enterprise gateway solution. In addition, it offers ERT Security Updates Subscription that provides protection from network elements, hosts, and applications; ERT Active Attackers Feed, a threat intelligence feed to protect against DDoS threats; ERT Protection Packages; Alteon Global Elastic License, a purchasing and deployment subscription; MSSP Portal, a DDoS detection and mitigation service portal; Location-based Mitigation that enables network traffic based on the geolocation mapping of IP subnets; and Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud. Further, the company provides Cloud Web DDoS Protection, Cloud WAF Service, Bot Manager, Cloud-Native Protector, and Cloud Application Protection Services, as well as technical support, professional, managed, and training and certification services. It sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. The company was founded in 1996 and is headquartered in Tel Aviv, Israel.

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.