Maximus (NYSE:MMS) & Paymentus (NYSE:PAY) Critical Review

Paymentus (NYSE:PAY) and Maximus (NYSE:MMS) are both mid-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paymentus	5.19%	10.84%	9.24%
Maximus	5.28%	21.95%	9.60%

Earnings & Valuation

This table compares Paymentus and Maximus”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paymentus	$871.75 million	4.17	$22.32 million	$0.34	85.47
Maximus	$5.38 billion	0.71	$306.91 million	$4.65	14.49

Maximus has higher revenue and earnings than Paymentus. Maximus is trading at a lower price-to-earnings ratio than Paymentus, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Paymentus has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Maximus has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Insider and Institutional Ownership

78.4% of Paymentus shares are owned by institutional investors. Comparatively, 97.2% of Maximus shares are owned by institutional investors. 87.8% of Paymentus shares are owned by insiders. Comparatively, 1.6% of Maximus shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Paymentus and Maximus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	5	2	1	2.50
Maximus	0	0	1	0	3.00

Paymentus currently has a consensus target price of $30.00, suggesting a potential upside of 3.23%. Maximus has a consensus target price of $90.00, suggesting a potential upside of 33.55%. Given Maximus’ stronger consensus rating and higher probable upside, analysts plainly believe Maximus is more favorable than Paymentus.

Summary

Maximus beats Paymentus on 9 of the 15 factors compared between the two stocks.

About Paymentus

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.

About Maximus

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.