Critical Comparison: Huron Consulting Group (HURN) & ServiceMaster Global Holdings (SERV)
Huron Consulting Group (NASDAQ: HURN) and ServiceMaster Global Holdings (NYSE:SERV) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility and Risk
Huron Consulting Group has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, ServiceMaster Global Holdings has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
This table compares Huron Consulting Group and ServiceMaster Global Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Huron Consulting Group||-74.37%||-101.99%||-50.60%|
|ServiceMaster Global Holdings||7.92%||40.74%||5.17%|
This is a summary of current recommendations and price targets for Huron Consulting Group and ServiceMaster Global Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Huron Consulting Group||0||2||3||0||2.60|
|ServiceMaster Global Holdings||1||2||7||0||2.60|
Huron Consulting Group currently has a consensus price target of $48.00, indicating a potential upside of 36.36%. ServiceMaster Global Holdings has a consensus price target of $49.40, indicating a potential upside of 9.32%. Given Huron Consulting Group’s higher probable upside, research analysts clearly believe Huron Consulting Group is more favorable than ServiceMaster Global Holdings.
Insider and Institutional Ownership
88.5% of Huron Consulting Group shares are owned by institutional investors. 2.7% of Huron Consulting Group shares are owned by company insiders. Comparatively, 1.2% of ServiceMaster Global Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Huron Consulting Group 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|
|Huron Consulting Group||$731.79 million||1.03||$112.11 million||($5.98)||-5.89|
|ServiceMaster Global Holdings||$2.84 billion||2.12||$665.00 million||$1.66||27.22|
ServiceMaster Global Holdings has higher revenue and earnings than Huron Consulting Group. Huron Consulting Group is trading at a lower price-to-earnings ratio than ServiceMaster Global Holdings, indicating that it is currently the more affordable of the two stocks.
ServiceMaster Global Holdings beats Huron Consulting Group on 10 of the 13 factors compared between the two stocks.
Huron Consulting Group Company Profile
Huron Consulting Group Inc. is a global professional services firm. The Company offers solutions in operations, advisory services, technology and analytics for healthcare, higher education, life sciences and commercial sectors. The Company’s segments include Healthcare, Education and Life Sciences, and Business Advisory. Its Healthcare segment provides advisory services, from strategy setting through implementation, in the areas of organizational and resource alignment, clinical transformation, financial and operational performance, patient and caregiver engagement, and technology implementation and optimization. Its Education and Life Sciences segment provides management consulting and technology solutions to the higher education and academic medical centers, pharmaceutical and medical device, biotechnology and research industries. The Business Advisory segment’s primary service lines include Enterprise Solutions and Analytics, and Business Advisory.
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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