MAXIMUS (NYSE:MMS) and InterCloud Systems (OTCMKTS:ICLD) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Volatility & Risk

MAXIMUS has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, InterCloud Systems has a beta of 3.61, indicating that its share price is 261% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for MAXIMUS and InterCloud Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MAXIMUS 0 1 0 0 2.00
InterCloud Systems 0 0 0 0 N/A

MAXIMUS presently has a consensus price target of $67.00, indicating a potential downside of 6.27%. Given MAXIMUS’s higher probable upside, analysts clearly believe MAXIMUS is more favorable than InterCloud Systems.

Institutional and Insider Ownership

95.8% of MAXIMUS shares are held by institutional investors. 2.2% of MAXIMUS shares are held by insiders. Comparatively, 0.5% of InterCloud Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

MAXIMUS pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. InterCloud Systems does not pay a dividend. MAXIMUS pays out 29.4% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares MAXIMUS and InterCloud Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MAXIMUS $2.39 billion 1.91 $220.75 million $3.40 21.02
InterCloud Systems $34.52 million 0.01 -$44.33 million N/A N/A

MAXIMUS has higher revenue and earnings than InterCloud Systems.

Profitability

This table compares MAXIMUS and InterCloud Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MAXIMUS 8.76% 21.19% 15.08%
InterCloud Systems -26.68% N/A -88.76%

Summary

MAXIMUS beats InterCloud Systems on 10 of the 12 factors compared between the two stocks.

About MAXIMUS

MAXIMUS, Inc. provides business process services (BPS) to government health and human services programs worldwide. The company's Health Services segment offers various BPS, appeals, and assessments for state, provincial, and national government programs, including Medicaid, Children's Health Insurance Program, Affordable Care Act, Health Insurance British Columbia, Health Assessment Advisory Service contract, and Preadmission Screening and Resident Reviews. This segment offers program eligibility support and enrollment; application assistance and independent health plan enrollment counseling; beneficiary outreach, education, eligibility, enrollment, and renewal; document and record management; payment processing and administration; and digital eHealth and wellbeing solutions. It also provides independent disability, long-term sick, and other health assessment; occupational health clinical assessment; specialized consulting; and centralized multilingual customer contact centers and multichannel self-service options for enrollment. The company's U.S. Federal Services segment offers centralized citizen engagement centers and support services; document and record management; case management, citizen engagement, and consumer education; independent medical reviews and worker's compensation benefit appeals; and Medicare and Medicaid appeals, and program eligibility appeals. It also provides modernization of systems and information technology infrastructure; infrastructure operations and support services; software development, operations, and management services; and data analytics services. The company's Human Services segment offers national, state, provincial, and local human services agencies, as well as various BPS and related consulting services. It also provides management tools and professional consulting, program consulting, and tax credit and employer services. The company was founded in 1975 and is headquartered in Reston, Virginia.

About InterCloud Systems

InterCloud Systems, Inc. provides networking orchestration and automation for software-defined networking (SDN) and network function virtualization environments to telecommunications service provider and corporate enterprise markets in the United States and internationally. It operates through two segments, Applications and Infrastructure and Professional Services. The Applications and Infrastructure segment provides applications and services, including SDN training, SDN software development and integration, and vertical network function validation; and cabling and other field installations, as well as designs, engineers, installs, and maintains various types of Wi-Fi and DAS networks to enterprise customers. The Professional Services segment engages in the design and deployment of SDN and software-defined wide area networking solutions for enterprise and carrier accounts. The company is based in Shrewsbury, New Jersey.

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