CBZ vs ESNT

For growth investors, CBIZ, Inc.

(CBZ) is the stronger pick with 52. 1% revenue growth year-over-year, versus 12. 0% for Essent Group Ltd. (ESNT). Essent Group Ltd. (ESNT) offers the better valuation at 9. 0x trailing P/E (8. 7x forward), making it the more compelling value choice. Analysts rate CBIZ, Inc. (CBZ) a "Buy" — based on 2 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Essent Group Ltd.

(ESNT) is the cheapest at 9. 0x versus CBIZ, Inc. at 17. 3x. On forward P/E, CBIZ, Inc. is actually cheaper at 8. 0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: CBIZ, Inc. wins at 1. 49x versus Essent Group Ltd. 's 2. 23x — a reasonable growth-adjusted valuation.

Over the past 5 years, Essent Group Ltd.

(ESNT) delivered a total return of +34. 2%, compared to -9. 4% for CBIZ, Inc. (CBZ). Over 10 years, the gap is even starker: ESNT returned +226. 7% versus CBZ's +210. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Essent Group Ltd.

(ESNT) is the lower-risk stock at 0. 38β versus CBIZ, Inc. 's 0. 65β — meaning CBZ is approximately 73% more volatile than ESNT relative to the S&P 500. On balance sheet safety, Essent Group Ltd. (ESNT) carries a lower debt/equity ratio of 9% versus 104% for CBIZ, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), CBIZ, Inc.

(CBZ) is pulling ahead at 52. 1% versus 12. 0% for Essent Group Ltd. (ESNT). On earnings-per-share growth, the picture is similar: CBIZ, Inc. grew EPS 134. 6% year-over-year, compared to 5. 4% for Essent Group Ltd.. Over a 3-year CAGR, CBZ leads at 25. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Essent Group Ltd.

(ESNT) is the more profitable company, earning 57. 6% net margin versus 4. 2% for CBIZ, Inc. — meaning it keeps 57. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ESNT leads at 67. 5% versus 8. 5% for CBZ. At the gross margin level — before operating expenses — ESNT leads at 93. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, CBIZ, Inc. (CBZ) is the more undervalued stock at a PEG of 1. 49x versus Essent Group Ltd. 's 2. 23x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, CBIZ, Inc. (CBZ) trades at 8. 0x forward P/E versus 8. 7x for Essent Group Ltd. — 0. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CBZ: 24. 9% to $39. 50.

In this comparison, ESNT (1.

8% yield) pays a dividend. CBZ does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Essent Group Ltd.

(ESNT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 38), 1. 8% yield, +226. 7% 10Y return). Both have compounded well over 10 years (ESNT: +226. 7%, CBZ: +210. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (CBZ (Industrials) and ESNT (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: CBZ is a small-cap high-growth stock; ESNT is a small-cap deep-value stock. ESNT pays a dividend while CBZ does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.