Reviewing Maximus (NYSE:MMS) and Paysafe (NYSE:PSFE)

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

Valuation & Earnings

This table compares Maximus and Paysafe”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Maximus	$5.31 billion	0.73	$306.91 million	$4.65	14.70
Paysafe	$1.60 billion	0.78	-$20.25 million	($0.38)	-53.74

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

Insider and Institutional Ownership

97.2% of Maximus shares are owned by institutional investors. Comparatively, 54.4% of Paysafe shares are owned by institutional investors. 1.6% of Maximus shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Maximus and Paysafe, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maximus	0	0	1	0	3.00
Paysafe	2	2	0	0	1.50

Maximus currently has a consensus target price of $90.00, suggesting a potential upside of 31.70%. Paysafe has a consensus target price of $19.63, suggesting a potential downside of 3.90%. Given Maximus’ stronger consensus rating and higher probable upside, research analysts clearly believe Maximus is more favorable than Paysafe.

Volatility and Risk

Maximus has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Paysafe has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500.

Profitability

This table compares Maximus and Paysafe’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%
Paysafe	-1.38%	12.92%	2.25%

Summary

Maximus beats Paysafe on 12 of the 14 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 Paysafe

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.