Financial Contrast: Maximus (NYSE:MMS) vs. OptimizeRx (NASDAQ:OPRX)

Maximus (NYSE:MMS) and OptimizeRx (NASDAQ:OPRX) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Volatility and Risk

Maximus has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, OptimizeRx has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Institutional and Insider Ownership

97.2% of Maximus shares are owned by institutional investors. Comparatively, 76.5% of OptimizeRx shares are owned by institutional investors. 1.4% of Maximus shares are owned by company insiders. Comparatively, 6.1% of OptimizeRx shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maximus	0	0	1	0	3.00
OptimizeRx	0	2	7	0	2.78

Maximus presently has a consensus price target of $90.00, indicating a potential upside of 16.13%. OptimizeRx has a consensus price target of $9.19, indicating a potential upside of 67.35%. Given OptimizeRx’s higher probable upside, analysts plainly believe OptimizeRx is more favorable than Maximus.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Maximus	5.78%	20.95%	9.28%
OptimizeRx	-27.41%	-4.92%	-3.41%

Valuation & Earnings

This table compares Maximus and OptimizeRx”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	0.88	$306.91 million	$5.00	15.50
OptimizeRx	$88.18 million	1.15	-$17.57 million	($1.33)	-4.13

Maximus has higher revenue and earnings than OptimizeRx. OptimizeRx 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 OptimizeRx on 9 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 OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.