Contrasting XBP Europe (NASDAQ:XBP) and CBIZ (NYSE:CBZ)

CBIZ (NYSE:CBZ) and XBP Europe (NASDAQ:XBP) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Institutional & Insider Ownership

87.4% of CBIZ shares are held by institutional investors. Comparatively, 15.7% of XBP Europe shares are held by institutional investors. 5.4% of CBIZ shares are held by insiders. Comparatively, 82.5% of XBP Europe shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CBIZ	7.08%	15.12%	6.16%
XBP Europe	-9.50%	N/A	-14.57%

Earnings and Valuation

This table compares CBIZ and XBP Europe”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBIZ	$1.81 billion	2.14	$120.97 million	$1.09	66.11
XBP Europe	$157.15 million	0.25	-$11.05 million	N/A	N/A

CBIZ has higher revenue and earnings than XBP Europe.

Analyst Ratings

This is a summary of current ratings and target prices for CBIZ and XBP Europe, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBIZ	0	0	2	0	3.00
XBP Europe	0	0	0	0	0.00

CBIZ currently has a consensus price target of $86.00, indicating a potential upside of 19.35%. Given CBIZ’s stronger consensus rating and higher possible upside, equities analysts clearly believe CBIZ is more favorable than XBP Europe.

Volatility and Risk

CBIZ has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, XBP Europe has a beta of -0.28, suggesting that its share price is 128% less volatile than the S&P 500.

Summary

CBIZ beats XBP Europe on 11 of the 12 factors compared between the two stocks.

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.

About XBP Europe

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.