Higher One (NYSE: ONE) and Servicemaster Global (NYSE:SERV) are both business support services – nec companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Analyst Ratings

This is a summary of recent ratings for Higher One and Servicemaster Global, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Higher One 0 0 0 0 N/A
Servicemaster Global 2 2 7 0 2.45

Servicemaster Global has a consensus price target of $48.73, suggesting a potential downside of 6.02%. Given Servicemaster Global’s higher probable upside, analysts plainly believe Servicemaster Global is more favorable than Higher One.

Volatility and Risk

Higher One has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Servicemaster Global has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Profitability

This table compares Higher One and Servicemaster Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Higher One -26.77% -16.36% -10.01%
Servicemaster Global 8.16% 40.22% 5.42%

Insider & Institutional Ownership

100.0% of Servicemaster Global shares are held by institutional investors. 1.2% of Servicemaster Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Higher One and Servicemaster Global’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Higher One N/A N/A N/A ($0.62) -8.31
Servicemaster Global $2.75 billion 2.55 $155.00 million $1.73 29.97

Servicemaster Global has higher revenue and earnings than Higher One. Higher One is trading at a lower price-to-earnings ratio than Servicemaster Global, indicating that it is currently the more affordable of the two stocks.

Summary

Servicemaster Global beats Higher One on 10 of the 11 factors compared between the two stocks.

Higher One Company Profile

Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.

Servicemaster Global Company Profile

ServiceMaster Global Holdings, Inc. is a provider of essential residential and commercial services. The Company operates through three segments: Terminix, American Home Shield and the Franchise Services Group. Its portfolio of brands includes Terminix, American Home Shield, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. The Terminix segment provides termite and pest control services in the United States. The American Home Shield segment provides home warranty plans that cover the repair or replacement of components of up to 21 household systems and appliances, including electrical, plumbing, central heating and air conditioning (HVAC) systems, dishwashers and ovens/cook tops. The Franchise Services Group segment consists of the ServiceMaster Restore (disaster restoration), ServiceMaster Clean (janitorial), Merry Maids (residential cleaning), Furniture Medic (cabinet and wood furniture repair) and AmeriSpec (home inspection) businesses.

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