MAXIMUS (NYSE: MMS) and Brink's (NYSE:BCO) are both mid-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.
Volatility & Risk
MAXIMUS has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Brink's has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.
This table compares MAXIMUS and Brink's’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
94.8% of MAXIMUS shares are owned by institutional investors. Comparatively, 90.6% of Brink's shares are owned by institutional investors. 3.1% of MAXIMUS shares are owned by company insiders. Comparatively, 10.4% of Brink's shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings for MAXIMUS and Brink's, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MAXIMUS presently has a consensus price target of $62.60, suggesting a potential downside of 12.07%. Brink's has a consensus price target of $92.67, suggesting a potential upside of 16.49%. Given Brink's’ stronger consensus rating and higher possible upside, analysts clearly believe Brink's is more favorable than MAXIMUS.
Earnings and Valuation
This table compares MAXIMUS and Brink's’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MAXIMUS||$2.45 billion||1.89||$209.42 million||$3.17||22.46|
|Brink's||$3.02 billion||1.33||$34.50 million||$1.62||49.10|
MAXIMUS has higher earnings, but lower revenue than Brink's. MAXIMUS is trading at a lower price-to-earnings ratio than Brink's, indicating that it is currently the more affordable of the two stocks.
MAXIMUS pays an annual dividend of $0.18 per share and has a dividend yield of 0.3%. Brink's pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. MAXIMUS pays out 5.7% of its earnings in the form of a dividend. Brink's pays out 37.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Brink's beats MAXIMUS on 9 of the 16 factors compared between the two stocks.
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.
The Brink’s Company (Brink’s) is a provider of logistics and security solutions. The Company operates through nine segments: U.S., France, Mexico, Brazil, Canada, Latin America, EMEA, Asia and Payment Services. The Company’s solutions include cash-in-transit (CIT), automated teller machine (ATM) replenishment and maintenance, cash management services, including vault outsourcing, money processing, and intelligent safe services, international transportation of valuables, and payment services. Its customers include financial institutions, retailers, government agencies (including central banks), mints, jewelers and other commercial operations around the world. As of December 31, 2016, the Company’s global network served customers in over 100 countries. Its services offerings include Core Services, High-Value Services and Other Security Services.
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