Reviewing Moneygram International (MGI) and MAXIMUS (MMS)

Moneygram International (NASDAQ: MGI) and MAXIMUS (NYSE:MMS) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Dividends

MAXIMUS pays an annual dividend of $0.18 per share and has a dividend yield of 0.3%. Moneygram International does not pay a dividend. MAXIMUS pays out 5.9% of its earnings in the form of a dividend.

Profitability

This table compares Moneygram International and MAXIMUS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moneygram International -1.97% -11.96% 1.04%
MAXIMUS 9.15% 21.67% 15.50%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Moneygram International and MAXIMUS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moneygram International 1 1 0 0 1.50
MAXIMUS 0 3 0 0 2.00

Moneygram International presently has a consensus price target of $17.39, suggesting a potential upside of 152.39%. MAXIMUS has a consensus price target of $69.50, suggesting a potential upside of 10.62%. Given Moneygram International’s higher possible upside, equities research analysts plainly believe Moneygram International is more favorable than MAXIMUS.

Risk & Volatility

Moneygram International has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, MAXIMUS has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Insider & Institutional Ownership

86.2% of Moneygram International shares are owned by institutional investors. Comparatively, 93.9% of MAXIMUS shares are owned by institutional investors. 45.4% of Moneygram International shares are owned by company insiders. Comparatively, 3.1% of MAXIMUS 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.

Earnings and Valuation

This table compares Moneygram International and MAXIMUS’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Moneygram International $1.60 billion 0.24 -$29.80 million $0.88 7.83
MAXIMUS $2.45 billion 1.67 $209.42 million $3.03 20.74

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

Summary

MAXIMUS beats Moneygram International on 11 of the 15 factors compared between the two stocks.

About Moneygram International

MoneyGram International, Inc., together with its subsidiaries, provides money transfer services in the United States and internationally. The company operates through two segments, Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment offers money transfer services and bill payment services primarily to unbanked and underbanked consumers. The Financial Paper Products segment provides money orders to consumers through its agents and financial institutions; and official check outsourcing services for financial institutions. This segment sells its money orders under the MoneyGram brand and on a private label or co-branded basis with retail and financial institution. The company also offers digital solutions, such as moneygram.com, mobile solutions, account deposit, and kiosk-based services. MoneyGram International, Inc. was founded in 1926 and is based in Dallas, Texas.

About MAXIMUS

MAXIMUS, Inc. provides business process services (BPS) to government health and human services programs in the United States, the United Kingdom, Australia, Canada, Singapore, and Saudi Arabia. The company's Health Services segment offers various BPS, appeals, and assessments, as well as related consulting services for state, provincial, and national government programs comprising Medicaid, Children's Health Insurance Program, the Affordable Care Act, Health Insurance British Columbia, the Health Assessment Advisory Service, and Preadmission Screening and Resident Reviews. Its services include health insurance exchange customer contact center operations and support; health insurance program eligibility and enrollment; beneficiary outreach and education; application assistance and independent health plan enrollment counseling; premium payment processing and administration; eHealth solutions; independent disability, long-term sick, and health assessments; occupational health clinical assessments; and specialized program consulting services. The company's U.S. Federal Services segment offers services, including centralized customer contact centers and support services; documents and records management; and case management, citizen engagement, and consumer education; independent medical reviews and worker's compensation benefit appeals; health benefit appeals; eligibility appeals; modernization of systems and IT infrastructure; infrastructure operations and support; software development, operations, and management; and data analytics. Its Human Services segment provides national, state, and local human services agencies with various BPS and related consulting services for welfare-to-work, child support, and higher education; and management tools and professional consulting, program consulting, and tax credit and employer services. MAXIMUS, Inc. was founded in 1975 and is headquartered in Reston, Virginia.

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