Contrasting Maximus (NYSE:MMS) & KANZHUN (NASDAQ:BZ)

KANZHUN (NASDAQ:BZ) and Maximus (NYSE:MMS) are both mid-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Risk and Volatility

KANZHUN has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Maximus has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KANZHUN	53.16%	15.03%	12.02%
Maximus	7.07%	24.91%	10.08%

Dividends

KANZHUN pays an annual dividend of $0.15 per share and has a dividend yield of 0.9%. Maximus pays an annual dividend of $1.32 per share and has a dividend yield of 2.3%. KANZHUN pays out 10.6% of its earnings in the form of a dividend. Maximus pays out 19.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Maximus has increased its dividend for 2 consecutive years. Maximus is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares KANZHUN and Maximus”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KANZHUN	$1.18 billion	5.87	$391.15 million	$1.42	11.92
Maximus	$5.43 billion	0.55	$319.03 million	$6.77	8.50

KANZHUN has higher earnings, but lower revenue than Maximus. Maximus is trading at a lower price-to-earnings ratio than KANZHUN, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for KANZHUN and Maximus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KANZHUN	0	3	3	0	2.50
Maximus	1	1	0	0	1.50

KANZHUN currently has a consensus price target of $19.33, indicating a potential upside of 14.26%. Given KANZHUN’s stronger consensus rating and higher possible upside, analysts clearly believe KANZHUN is more favorable than Maximus.

Insider & Institutional Ownership

60.7% of KANZHUN shares are owned by institutional investors. Comparatively, 97.2% of Maximus shares are owned by institutional investors. 1.8% of Maximus shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

KANZHUN beats Maximus on 9 of the 17 factors compared between the two stocks.

About KANZHUN

Kanzhun Limited, together with its subsidiaries, provides online recruitment services in the People's Republic of China. The company offers its recruitment services through a mobile app under the BOSS Zhipin brand name. Its services allow enterprise customers to access and interact with job seekers and manage their recruitment process. The company also provides management consultancy and technical services. Kanzhun Limited was founded in 2013 and is headquartered in Beijing, the People's Republic of China.

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.