MAXIMUS (NYSE:MMS) and PFSweb (NASDAQ:PFSW) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Volatility & Risk
MAXIMUS has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, PFSweb has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.
This table compares MAXIMUS and PFSweb’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MAXIMUS||$2.39 billion||1.98||$220.75 million||$3.40||21.81|
|PFSweb||$326.16 million||0.24||$1.23 million||N/A||N/A|
MAXIMUS has higher revenue and earnings than PFSweb.
This table compares MAXIMUS and PFSweb’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
MAXIMUS pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. PFSweb does not pay a dividend. MAXIMUS pays out 29.4% of its earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for MAXIMUS and PFSweb, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MAXIMUS currently has a consensus target price of $67.00, indicating a potential downside of 9.65%. PFSweb has a consensus target price of $10.33, indicating a potential upside of 152.03%. Given PFSweb’s stronger consensus rating and higher possible upside, analysts clearly believe PFSweb is more favorable than MAXIMUS.
Institutional and Insider Ownership
94.3% of MAXIMUS shares are held by institutional investors. Comparatively, 57.7% of PFSweb shares are held by institutional investors. 2.2% of MAXIMUS shares are held by company insiders. Comparatively, 6.5% of PFSweb shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
MAXIMUS beats PFSweb on 10 of the 15 factors compared between the two stocks.
MAXIMUS Company Profile
MAXIMUS, Inc. provides business process services (BPS) to government health and human services programs worldwide. The company's Health Services segment offers various BPS, appeals, and assessments for state, provincial, and national government programs, including Medicaid, Children's Health Insurance Program, Affordable Care Act, Health Insurance British Columbia, Health Assessment Advisory Service contract, and Preadmission Screening and Resident Reviews. This segment offers program eligibility support and enrollment; application assistance and independent health plan enrollment counseling; beneficiary outreach, education, eligibility, enrollment, and renewal; document and record management; payment processing and administration; and digital eHealth and wellbeing solutions. It also provides independent disability, long-term sick, and other health assessment; occupational health clinical assessment; specialized consulting; and centralized multilingual customer contact centers and multichannel self-service options for enrollment. The company's U.S. Federal Services segment offers centralized citizen engagement centers and support services; document and record management; case management, citizen engagement, and consumer education; independent medical reviews and worker's compensation benefit appeals; and Medicare and Medicaid appeals, and program eligibility appeals. It also provides modernization of systems and information technology infrastructure; infrastructure operations and support services; software development, operations, and management services; and data analytics services. The company's Human Services segment offers national, state, provincial, and local human services agencies, as well as various BPS and related consulting services. It also provides management tools and professional consulting, program consulting, and tax credit and employer services. The company was founded in 1975 and is headquartered in Reston, Virginia.
PFSweb Company Profile
PFSweb, Inc. provides omni-channel commerce solutions in the United States, Europe, Canada, and India. It operates through two segments, LiveArea Professional Services and PFS Operations. The company offers strategic commerce consulting services, including commerce strategy, omni-channel consulting, digital opportunity audit, organizational/operational readiness, and platform evaluation/selection services; and design and digital marketing services, such as design, user experience, interactive development, search engine optimization and paid search, affiliate marketing, conversion optimization, storefront management, email marketing, and digital analytics. It also provides technology services comprising commerce development, managed, quality assurance, and training services; and order to cash service, such as technology collaboration, information management services, payments, business-to-business financial management, and direct-to-consumer financial management. In addition, the company offers fulfillment services, including distribution facilities and infrastructure, facility operations and management, pop-up distribution centers, and kitting and assembly services; and customer care services comprising customer service application, customer assistance, quality monitoring, and customer self-help. It serves clients in various industries, such as fashion apparel and accessories, fragrance and beauty products, consumer packaged goods, home furnishings and housewares, coins and collectibles, and technology products. The company was founded in 1999 and is headquartered in Allen, Texas.
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