Analyzing CBIZ (NYSE:CBZ) and OLO (NYSE:OLO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CBIZ	7.60%	15.49%	5.92%
OLO	-25.53%	-2.96%	-2.61%

Volatility and Risk

CBIZ has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, OLO has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Earnings and Valuation

This table compares CBIZ and OLO’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBIZ	$1.59 billion	2.40	$120.97 million	$2.38	32.01
OLO	$228.29 million	3.45	-$58.29 million	($0.36)	-13.50

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

Analyst Recommendations

This is a summary of current ratings and price targets for CBIZ and OLO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBIZ	0	1	0	0	2.00
OLO	0	3	4	0	2.57

CBIZ currently has a consensus price target of $63.00, suggesting a potential downside of 16.33%. OLO has a consensus price target of $9.10, suggesting a potential upside of 87.63%. Given OLO’s stronger consensus rating and higher probable upside, analysts clearly believe OLO is more favorable than CBIZ.

Institutional & Insider Ownership

87.4% of CBIZ shares are owned by institutional investors. Comparatively, 93.4% of OLO shares are owned by institutional investors. 5.4% of CBIZ shares are owned by insiders. Comparatively, 39.1% of OLO shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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 OLO

Olo Inc. operates an open SaaS platform for restaurants in the United States. The company's platform enables on-demand digital commerce operations, which cover digital ordering, delivery, front-of-house management, and payments. Its solutions include Order, a suite of solutions powering restaurant brands' on-demand commerce operations, enabling digital ordering, delivery, and channel management through ordering, dispatch, rails, switchboard, network, virtual brands, kiosk, catering, and sync modules; Engage, a suite of restaurant-centric marketing solutions optimizing guest lifetime value by strengthening and enhancing the restaurants' direct guest relationships, through the guest data platform, marketing, sentiment, and host modules; and Pay, a frictionless payment platform that enables restaurants to grow and protect their digital business through customer payment experience that offers advanced fraud prevention to improve authorization rates for valid transactions, and increase basket conversion through its Olo Pay module. The company was formerly known as Mobo Systems, Inc. and changed its name to Olo Inc. in January 2020. Olo Inc. was incorporated in 2005 and is headquartered in New York, New York.