Everi Holdings (NYSE: EVRI) and Maximus (NYSE:MMS) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Everi Holdings -26.95% -16,159.62% -16.89%
Maximus 8.43% 25.08% 15.44%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Everi Holdings and Maximus, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everi Holdings 0 0 3 0 3.00
Maximus 0 7 0 0 2.00

Everi Holdings presently has a consensus target price of $7.00, suggesting a potential downside of 3.05%. Maximus has a consensus target price of $61.50, suggesting a potential downside of 4.46%. Given Everi Holdings’ stronger consensus rating and higher possible upside, research analysts plainly believe Everi Holdings is more favorable than Maximus.

Valuation & Earnings

This table compares Everi Holdings and Maximus’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Everi Holdings $919.45 million 0.52 $200.09 million ($3.75) -1.93
Maximus $2.45 billion 1.70 $384.41 million $3.14 20.50

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

Institutional and Insider Ownership

85.4% of Everi Holdings shares are held by institutional investors. Comparatively, 97.2% of Maximus shares are held by institutional investors. 4.5% of Everi Holdings shares are held by company insiders. Comparatively, 3.1% of Maximus shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Everi Holdings has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Maximus has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Dividends

Maximus pays an annual dividend of $0.18 per share and has a dividend yield of 0.3%. Everi Holdings does not pay a dividend. Maximus pays out 5.7% of its earnings in the form of a dividend.

Summary

Maximus beats Everi Holdings on 10 of the 15 factors compared between the two stocks.

Everi Holdings Company Profile

Everi Holdings Inc. is a holding company. The Company operates through subsidiaries, including Everi Games Holding Inc. (Everi Games Holding) and Everi Payments Inc. (Everi Payments or Payments). The Company operates through two segments: Games and Payments. The Company provides video and mechanical reel gaming content and technology solutions, integrated gaming payments solutions, and compliance and efficiency software. Its games segment provides solutions directly to gaming establishments to offer its patrons gaming entertainment related experiences. The Payments segment provides solutions directly to gaming establishments to offer their patrons cash access related services and products, including access to cash at gaming facilities through automatic teller machine (ATM) cash withdrawals, credit card cash access transactions and point of sale debit card transactions.

Maximus Company Profile

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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