Maximus (NYSE:MMS) versus PayPal (NASDAQ:PYPL) Head-To-Head Comparison

Maximus (NYSE:MMS) and PayPal (NASDAQ:PYPL) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares Maximus and PayPal”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Maximus	$5.25 billion	1.04	$161.79 million	$3.81	23.62
PayPal	$31.03 billion	2.59	$4.25 billion	$3.97	19.34

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maximus	0	1	0	0	2.00
PayPal	0	16	19	1	2.58

PayPal has a consensus price target of $75.58, suggesting a potential downside of 1.54%. Given PayPal’s stronger consensus rating and higher probable upside, analysts plainly believe PayPal is more favorable than Maximus.

Insider and Institutional Ownership

97.2% of Maximus shares are held by institutional investors. Comparatively, 68.3% of PayPal shares are held by institutional investors. 1.4% of Maximus shares are held by company insiders. Comparatively, 0.1% of PayPal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Maximus	5.59%	20.91%	9.12%
PayPal	14.30%	22.82%	5.75%

Volatility and Risk

Maximus has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, PayPal has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Summary

PayPal beats Maximus on 11 of the 15 factors compared between the two stocks.

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.

About PayPal

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.