Maximus (MMS) versus Its Rivals Critical Survey

Maximus (NYSE:MMS) is one of 203 public companies in the “Professional Services” industry, but how does it weigh in compared to its peers? We will compare Maximus to related companies based on the strength of its dividends, valuation, analyst recommendations, earnings, institutional ownership, risk and profitability.

Valuation and Earnings

This table compares Maximus and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Maximus	$5.43 billion	$319.03 million	9.78
Maximus Competitors	$3.39 billion	$228.39 million	32.87

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

Profitability

This table compares Maximus and its peers’ 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	0.21%	36.55%	4.39%

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 2.5% and pay out -140.0% of their earnings in the form of a dividend. Maximus has raised its dividend for 2 consecutive years. Maximus lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of current recommendations for Maximus and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maximus	0	2	0	0	2.00
Maximus Competitors	1591	6476	9183	432	2.48

As a group, “Professional Services” companies have a potential upside of 27.49%. Given Maximus’ peers stronger consensus rating and higher probable upside, analysts plainly believe Maximus has less favorable growth aspects than its peers.

Volatility & Risk

Maximus has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Maximus’ peers have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Institutional & Insider Ownership

97.2% of Maximus shares are held by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are held by institutional investors. 1.8% of Maximus shares are held by company insiders. Comparatively, 17.1% of shares of all “Professional Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Maximus peers beat Maximus on 10 of the 15 factors compared.

Maximus Company Profile

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.