TuanChe (NASDAQ:TC) & Maximus (NYSE:MMS) Critical Review

TuanChe (NASDAQ:TC) and Maximus (NYSE:MMS) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for TuanChe and Maximus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TuanChe	0	0	0	0	0.00
Maximus	0	0	1	0	3.00

Maximus has a consensus price target of $90.00, indicating a potential upside of 25.90%. Given Maximus’ stronger consensus rating and higher possible upside, analysts clearly believe Maximus is more favorable than TuanChe.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TuanChe	N/A	N/A	N/A
Maximus	5.28%	21.95%	9.60%

Valuation and Earnings

This table compares TuanChe and Maximus”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TuanChe	$49.18 million	0.06	-$11.69 million	N/A	N/A
Maximus	$5.40 billion	0.75	$306.91 million	$5.03	14.21

Maximus has higher revenue and earnings than TuanChe.

Risk and Volatility

TuanChe has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Maximus has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Insider & Institutional Ownership

8.9% of TuanChe shares are owned by institutional investors. Comparatively, 97.2% of Maximus shares are owned by institutional investors. 0.5% of TuanChe shares are owned by company insiders. Comparatively, 1.6% of Maximus shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Maximus beats TuanChe on 11 of the 12 factors compared between the two stocks.

About TuanChe

TuanChe Limited, through its subsidiaries, operates as an omni-channel automotive marketplace in China and internationally. It organizes auto shows and special promotion events; and provides integrated marketing solutions to industry customers, which include automakers, franchised dealerships, secondary dealers, and automotive service providers, as well as enable interactions between participants on both sides of a potential transaction. The company also offers business and technical support, and consulting services; online marketing services through various online platforms, including tuanche.com website, WeChat account, WeChat mini-program, mobile applications, and Cheshangtong, a SaaS product; and referral services for commercial bank to enhance its auto loan business. The company has a strategic partnership with Alibaba Group's Tmall; and Beijing Easyhome Furnishing Chain Group Co., Ltd. TuanChe Limited was founded in 2010 and is headquartered in Beijing, China.

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.