Analyzing Clarivate (NYSE:CLVT) and Maximus (NYSE:MMS)

Clarivate (NYSE:CLVT) and Maximus (NYSE:MMS) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Clarivate and Maximus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clarivate	3	4	1	0	1.75
Maximus	0	2	0	0	2.00

Clarivate presently has a consensus target price of $2.77, indicating a potential upside of 68.19%. Given Clarivate’s higher probable upside, research analysts clearly believe Clarivate is more favorable than Maximus.

Profitability

This table compares Clarivate and Maximus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clarivate	-13.84%	9.15%	3.99%
Maximus	7.07%	24.91%	10.08%

Institutional & Insider Ownership

85.7% of Clarivate shares are held by institutional investors. Comparatively, 97.2% of Maximus shares are held by institutional investors. 22.9% of Clarivate shares are held by insiders. Comparatively, 1.8% of Maximus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Clarivate has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Maximus has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Earnings & Valuation

This table compares Clarivate and Maximus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clarivate	$2.41 billion	0.44	-$201.10 million	($0.52)	-3.16
Maximus	$5.43 billion	0.61	$319.03 million	$6.77	9.39

Maximus has higher revenue and earnings than Clarivate. Clarivate 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 Clarivate on 10 of the 14 factors compared between the two stocks.

About Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.

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.