Maximus (NYSE:MMS) versus Payoneer Global (NASDAQ:PAYO) Critical Analysis

Maximus (NYSE:MMS) and Payoneer Global (NASDAQ:PAYO) are both mid-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Maximus	5.28%	21.95%	9.60%
Payoneer Global	13.82%	17.78%	1.73%

Valuation and Earnings

This table compares Maximus and Payoneer Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Maximus	$5.38 billion	0.71	$306.91 million	$4.65	14.46
Payoneer Global	$977.72 million	2.27	$93.33 million	$0.33	18.67

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

Analyst Recommendations

This is a summary of current ratings and target prices for Maximus and Payoneer Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maximus	0	0	1	0	3.00
Payoneer Global	0	2	6	1	2.89

Maximus currently has a consensus target price of $90.00, suggesting a potential upside of 33.89%. Payoneer Global has a consensus target price of $12.36, suggesting a potential upside of 100.60%. Given Payoneer Global’s higher probable upside, analysts clearly believe Payoneer Global is more favorable than Maximus.

Risk and Volatility

Maximus has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Payoneer Global has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Institutional & Insider Ownership

97.2% of Maximus shares are owned by institutional investors. Comparatively, 82.2% of Payoneer Global shares are owned by institutional investors. 1.6% of Maximus shares are owned by company insiders. Comparatively, 5.6% of Payoneer Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Payoneer Global beats Maximus on 8 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 Payoneer Global

Payoneer Global Inc. operates as a financial technology company. It operates a payment infrastructure platform that provides customers with a one-stop, global, multi-currency account to serve their accounts receivable and accounts payable needs. The company delivers a suite of services that includes cross-border payments, physical and virtual MasterCard cards, working capital, risk management, and other services. It also offers various payment options with minimal integration required, full back-office functions, and customer support offered. The company's platform delivers bank-grade security, stability, and redundancy. It serves customers, such as small and medium-sized businesses in approximately 190 countries and territories worldwide. Payoneer Global Inc. was founded in 2005 and is headquartered in New York, New York.