First Advantage Corporation (FA) vs Maximus, Inc. (MMS)

First Advantage Corporation and Maximus, Inc. are both Specialty Business Services companies. First Advantage Corporation is the larger, with a market value of $3.4B against $2.8B — 1.2× the size. Maximus, Inc. trades at the lower P/E: 7.7× against 135×. First Advantage Corporation grew revenue faster over the last twelve months: 32.9% against −3.32%. Maximus, Inc. has the higher net margin (7.07% vs 1.51%) and the higher return on invested capital (10.9% vs 3.59%). Across the 22 metrics below, Maximus, Inc. leads on 16 and First Advantage Corporation on 6.

Valuation

Metric FA MMS Specialty Business Services median
P/E 135.27 7.71 23.86
P/S 2.02 0.53 1.06
P/B 2.60 1.60 2.37
Price to free cash flow 17.22 6.63 16.54
EV/EBITDA 11.98 6.08 11.51
EV/Sales 3.12 0.83 1.51
Earnings yield 0.74% 12.96% 2.14%
Free cash flow yield 5.81% 15.07% 1.55%

Profitability

Metric FA MMS Specialty Business Services median
Gross margin 45.22% 25.59% 35.31%
Operating margin 10.68% 11.03% 3.43%
Net margin 1.51% 7.07% 1.67%
Free cash flow margin 11.75% 8.25% 3.28%
Return on equity 1.94% 21.11% 0.58%
Return on assets 0.66% 8.40% 0.33%
Return on invested capital 3.59% 10.90% 0.65%

Growth

Metric FA MMS Specialty Business Services median
Revenue growth (TTM) 32.89% (3.32%) 6.04%
EPS growth (last fiscal year) 72.97% 10.42% —
Revenue growth, 5-year CAGR 25.33% 9.43% 7.66%
Net income growth, 5-year CAGR 0.00% 8.26% 0.00%

Health

Metric FA MMS Specialty Business Services median
Debt to equity 1.57 0.94 0.21
Current ratio 2.53 2.42 1.62
Net debt to EBITDA 4.75 1.67 1.16

Dividend

Metric FA MMS Specialty Business Services median
Dividend yield — 1.45% 1.61%
Payout ratio 0.00 0.40 0.00

Size

Metric FA MMS Specialty Business Services median
Market cap 3.42b 2.76b 879.14m

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