CBIZ, Inc. (CBZ) vs Target Hospitality Corp. (TH)

CBIZ, Inc. and Target Hospitality Corp. are both Specialty Business Services companies. CBIZ, Inc. is the larger, with a market value of $3.0B against $2.2B — 1.4× the size. Target Hospitality Corp. has negative trailing earnings, so its P/E is not meaningful; CBIZ, Inc. trades at 25.6×. CBIZ, Inc. grew revenue faster over the last twelve months: 14.3% against 11.9%. CBIZ, Inc. has the higher net margin (4.73% vs −10.9%) and the higher return on invested capital (3.92% vs −5.94%). Across the 21 metrics below, CBIZ, Inc. leads on 18 and Target Hospitality Corp. on 3.

Valuation

Metric CBZ TH Specialty Business Services median
P/E 25.55 n/m 23.86
P/S 1.18 5.94 1.06
P/B 1.74 5.58 2.37
Price to free cash flow 11.86 197.76 16.54
EV/EBITDA 15.21 55.08 11.51
EV/Sales 1.68 6.56 1.51
Earnings yield 3.91% (1.83%) 2.14%
Free cash flow yield 8.43% 0.51% 1.55%

Profitability

Metric CBZ TH Specialty Business Services median
Gross margin 12.21% 13.73% 35.31%
Operating margin 7.38% (11.10%) 3.43%
Net margin 4.73% (10.85%) 1.67%
Free cash flow margin 9.91% 3.00% 3.28%
Return on equity 6.97% (9.78%) 0.58%
Return on assets 2.87% (6.34%) 0.33%
Return on invested capital 3.92% (5.94%) 0.65%

Growth

Metric CBZ TH Specialty Business Services median
Revenue growth (TTM) 14.32% 11.92% 6.04%
EPS growth (last fiscal year) 134.62% (152.86%) —
Revenue growth, 5-year CAGR 23.40% 7.33% 7.66%
Net income growth, 5-year CAGR 8.07% 0.00% 0.00%

Health

Metric CBZ TH Specialty Business Services median
Debt to equity 0.78 0.11 0.21
Current ratio 1.47 0.65 1.62
Net debt to EBITDA 4.14 (0.17) 1.16

Dividend

Metric CBZ TH Specialty Business Services median
Dividend yield — — 1.61%
Payout ratio 0.00 0.00 0.00

Size

Metric CBZ TH Specialty Business Services median
Market cap 3.00b 2.16b 879.14m

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