Maximus (MMS) and Its Peers Head to Head Analysis

Maximus (NYSE:MMS – Get Free Report) is one of 203 publicly-traded companies in the “Professional Services” industry, but how does it contrast to its rivals? We will compare Maximus to similar businesses based on the strength of its risk, profitability, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Dividends

Maximus pays an annual dividend of $1.32 per share and has a dividend yield of 2.0%. Maximus pays out 19.5% of its earnings in the form of a dividend. As a group, “Professional Services” companies pay a dividend yield of 2.4% and pay out -164.4% of their earnings in the form of a dividend. Maximus has raised its dividend for 2 consecutive years. Maximus lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

97.2% of Maximus shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are owned by institutional investors. 1.8% of Maximus shares are owned by company insiders. Comparatively, 17.2% of shares of all “Professional Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Maximus and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Maximus 0 2 0 0 2.00
Maximus Competitors 1580 6438 9164 430 2.48

As a group, “Professional Services” companies have a potential upside of 25.86%. Given Maximus’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Maximus has less favorable growth aspects than its rivals.

Profitability

This table compares Maximus and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Maximus 7.07% 24.91% 10.08%
Maximus Competitors -0.60% 20.41% 4.31%

Valuation and Earnings

This table compares Maximus and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Maximus $5.43 billion $319.03 million 9.83
Maximus Competitors $3.31 billion $228.36 million 35.62

Maximus has higher revenue and earnings than its rivals. Maximus is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Maximus has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Maximus’ rivals have a beta of 0.98, suggesting that their average stock price is 2% less volatile than the S&P 500.

Summary

Maximus rivals beat Maximus on 9 of the 15 factors compared.

Maximus Company Profile

(Get Free Report)

Maximus, Inc. operates as a provider of government services in the United States and internationally. It operates through three segments: U.S. Federal Services, U.S. Services, and Outside the U.S. The U.S. Services segment offers program eligibility support and enrollment; centralized multilingual customer contact centers, multichannel, and digital self-service options for enrollment; application assistance and independent health plan choice counseling; beneficiary outreach, education, eligibility, enrollment, and redeterminations; and person-centered independent disability, long-term sick, and other health assessments. This segment also provides employment services, such as eligibility support, case management, job-readiness preparation, job search and employer outreach, job retention and career advancement, and educational and training services; technology solutions; system implementation project management services; and specialized consulting services. The U.S. Federal Services segment offers Business process services, eligibility and enrollment, outreach, and other services for federal health and human services programs; clinical services; and technology solutions, including application development and modernization services, enterprise business solutions, advanced analytics and emerging technologies, cybersecurity services, and infrastructure and engineering solutions. The Outside the U.S. segment offers BPS solutions for international governments, including health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker-related services. Maximus, Inc. was founded in 1975 and is headquartered in McLean, Virginia.

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