Head-To-Head Analysis: CBIZ (NYSE:CBZ) and Labor Smart (OTCMKTS:LTNC)

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

Risk and Volatility

Labor Smart has a beta of -0.47, meaning that its share price is 147% less volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Profitability

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

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

Institutional & Insider Ownership

87.4% of CBIZ shares are held by institutional investors. 8.1% of Labor Smart shares are held by insiders. Comparatively, 4.1% of CBIZ shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Labor Smart 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
Labor Smart	N/A	N/A	N/A	($0.02)	-0.01
CBIZ	$2.76 billion	1.07	$115.44 million	$2.14	25.45

CBIZ has higher revenue and earnings than Labor Smart. Labor Smart 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 breakdown of recent ratings and price targets for Labor Smart and CBIZ, as provided by MarketBeat.com.

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

CBIZ has a consensus target price of $44.50, indicating a potential downside of 18.29%. Given CBIZ’s stronger consensus rating and higher probable upside, analysts plainly believe CBIZ is more favorable than Labor Smart.

Summary

CBIZ beats Labor Smart on 11 of the 12 factors compared between the two stocks.

About Labor Smart

Labor Smart, Inc. engages in providing temporary blue-collar staffing services. It supplies general laborers on demand to the light industries, including manufacturing, logistics, and warehousing, skilled trade’s people and general laborers to commercial construction industries. The company was founded by Christopher Ryan Schadel on May 31, 2011 and is headquartered in Powder Springs, GA.

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.