Higher One (NYSE: ONE) and MAXIMUS (NYSE:MMS) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Institutional and Insider Ownership
96.7% of MAXIMUS shares are owned by institutional investors. 2.5% of MAXIMUS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Higher One and MAXIMUS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Higher One and MAXIMUS, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MAXIMUS has a consensus price target of $65.50, suggesting a potential downside of 3.96%. Given MAXIMUS’s higher possible upside, analysts clearly believe MAXIMUS is more favorable than Higher One.
Earnings & Valuation
This table compares Higher One and MAXIMUS’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MAXIMUS||$2.45 billion||1.81||$209.42 million||$2.96||23.04|
MAXIMUS has higher revenue and earnings than Higher One. Higher One is trading at a lower price-to-earnings ratio than MAXIMUS, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Higher One has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, MAXIMUS has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.
MAXIMUS pays an annual dividend of $0.18 per share and has a dividend yield of 0.3%. Higher One does not pay a dividend. MAXIMUS pays out 6.1% of its earnings in the form of a dividend.
MAXIMUS beats Higher One on 10 of the 12 factors compared between the two stocks.
About Higher One
Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.
MAXIMUS, Inc. provides business process services (BPS) to government health and human services agencies. The Company operates through three segments: U.S. Federal Services, Health Services and Human Services. The U.S. Federal Services segment provides BPS and program management for large government programs, independent health review and appeals services for both the United States Federal Government, and state-based programs and technology solutions for civilian federal programs. The Health Services segment provides a range of BPS, as well as related consulting services, for state, provincial and national government programs. The Human Services segment provides national, state and local human services agencies with a range of BPS and related consulting services for welfare-to-work, child support, higher education and K-12 special education programs.
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