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How Does MAXIMUS Compare to Its Peers?

Gabriel Kane

MAXIMUS Shows Strong Revenue in Fiscal 4Q15

(Continued from Prior Part)

MAXIMUS and its peers

In this article, we’ll compare MAXIMUS (MMS) to its peers.

  • The PE (price-to-earnings) ratios of MAXIMUS, Accenture (ACN), Xerox (XRX), Broadridge Financial Solutions (BR), and ExlService Holdings (EXLS) are 22.7x, 21.9x, 28.1x, 24.0x, and 33.8x, respectively.

  • The PBV (price-to-book value) ratios of MAXIMUS, Accenture, Xerox, Broadridge, and ExlService are 5.5x, 10.6x, 1.2x, 7.2x, and 3.3x, respectively.

Thus, the company’s peers have outperformed it based on PE.

ETFs that invest in MAXIMUS

The Guggenheim S&P MidCap 400 Pure Growth ETF (RFG) invests 1.5% of its holdings in MAXIMUS. The ETF tracks a factor-weighted index of the S&P 400 companies exhibiting the strongest growth factors.

The Validea Market Legends ETF (VALX) invests 1.1% of its holdings in MAXIMUS. The ETF is an actively managed fund that selects US-listed stocks and ADRs (American depositary receipts) using models derived from the investing styles of several famous investors.

The PowerShares DWA Momentum ETF (PDP) invests 0.97% of its holdings in MAXIMUS. The ETF tracks an index of 100 US-listed large- and mid-cap companies selected and weighted by relative stock performance.

MAXIMUS compared to its ETFs

Now let’s look at a comparison of MAXIMUS and the ETFs that invest in it:

  • The year-to-date price movements of MAXIMUS, RFG, VALX, and PDP are -2.0%, 6.7%, -3.9%, and 4.0%, respectively.
  • The PE ratios of MAXIMUS, RFG, VALX, and PDP are 22.7x, 22.6x, 16.9x, and 23.8x, respectively.
  • The PBV ratios of MAXIMUS, RFG, VALX, and PDP are 5.5x, 3.6x, 2.3x, and 5.5x, respectively.

According to the above findings, the company’s ETFs are ahead of it based on price movement, but it has outperformed most of its ETFs based on PE and PBV.

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