OLO (NYSE:OLO) and CBIZ (NYSE:CBZ) Head to Head Analysis

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

Analyst Recommendations

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

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

OLO presently has a consensus target price of $9.10, indicating a potential upside of 82.00%. CBIZ has a consensus target price of $63.00, indicating a potential downside of 13.41%. Given OLO’s stronger consensus rating and higher possible upside, research analysts clearly believe OLO is more favorable than CBIZ.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OLO	$228.29 million	3.55	-$58.29 million	($0.36)	-13.89
CBIZ	$1.63 billion	2.24	$120.97 million	$2.47	29.46

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.

Risk & Volatility

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OLO	-25.53%	-2.96%	-2.61%
CBIZ	7.65%	15.79%	6.05%

Institutional & Insider Ownership

93.4% of OLO shares are held by institutional investors. Comparatively, 87.4% of CBIZ shares are held by institutional investors. 39.1% of OLO shares are held by company insiders. Comparatively, 5.4% of CBIZ shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

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.

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.