Lionbridge Technologies (LIOX) & ServiceMaster Global Holdings (SERV) Critical Analysis
Lionbridge Technologies (NASDAQ: LIOX) and ServiceMaster Global Holdings (NYSE:SERV) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitabiliy, analyst recommendations and risk.
Risk and Volatility
Lionbridge Technologies has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, ServiceMaster Global Holdings has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Valuation & Earnings
This table compares Lionbridge Technologies and ServiceMaster Global Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ServiceMaster Global Holdings||$2.84 billion||2.08||$665.00 million||$1.66||26.65|
ServiceMaster Global Holdings has higher revenue and earnings than Lionbridge Technologies. ServiceMaster Global Holdings is trading at a lower price-to-earnings ratio than Lionbridge Technologies, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Lionbridge Technologies and ServiceMaster Global Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ServiceMaster Global Holdings||2||0||5||0||2.43|
Lionbridge Technologies presently has a consensus target price of $6.38, suggesting a potential upside of 10.87%. ServiceMaster Global Holdings has a consensus target price of $43.57, suggesting a potential downside of 1.51%. Given Lionbridge Technologies’ higher possible upside, equities analysts plainly believe Lionbridge Technologies is more favorable than ServiceMaster Global Holdings.
This table compares Lionbridge Technologies and ServiceMaster Global Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ServiceMaster Global Holdings||7.92%||40.74%||5.17%|
Insider & Institutional Ownership
63.3% of Lionbridge Technologies shares are owned by institutional investors. 11.4% of Lionbridge Technologies shares are owned by insiders. Comparatively, 1.2% of ServiceMaster Global Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
ServiceMaster Global Holdings beats Lionbridge Technologies on 7 of the 11 factors compared between the two stocks.
Lionbridge Technologies Company Profile
Lionbridge Technologies, Inc. is a United States-based company, which provides translation, online marketing, global content management and application testing solutions. The Company enables more than 800 brands to manage international market share and engage their customers in local markets across the world. It offers various solutions, such as Language Translation Services, Global Marketing Services, Website Translation and Localization, Engineering, Technical Publications and Training, Testing Services and Translation Technology. Its portfolio of language translation services includes Website Translation, Software Localization, Real-Time Translation for Chat and Forums, and Interpreter Services. Its Data Management Services allow companies to manage unprocessed data from multiple languages. Its Crowd translation of user-generated content (blogs, messages, surveys, reviews) allows clients to repurpose pieces of consumer advocacy for a new target language.
ServiceMaster Global Holdings Company Profile
ServiceMaster Global Holdings, Inc. is a provider of essential residential and commercial services. The Company operates through three segments: Terminix, American Home Shield and the Franchise Services Group. Its portfolio of brands includes Terminix, American Home Shield, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. The Terminix segment provides termite and pest control services in the United States. The American Home Shield segment provides home warranty plans that cover the repair or replacement of components of up to 21 household systems and appliances, including electrical, plumbing, central heating and air conditioning (HVAC) systems, dishwashers and ovens/cook tops. The Franchise Services Group segment consists of the ServiceMaster Restore (disaster restoration), ServiceMaster Clean (janitorial), Merry Maids (residential cleaning), Furniture Medic (cabinet and wood furniture repair) and AmeriSpec (home inspection) businesses.
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