ServiceMaster (SERV) and Premier (PINC) Financial Analysis
ServiceMaster (NYSE: SERV) and Premier (NASDAQ:PINC) are both mid-cap construction companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.
Valuation and Earnings
This table compares ServiceMaster and Premier’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ServiceMaster||$2.91 billion||2.69||$510.00 million||$2.11||27.37|
|Premier||$1.45 billion||2.98||$113.42 million||$1.61||19.85|
This table compares ServiceMaster and Premier’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for ServiceMaster and Premier, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ServiceMaster presently has a consensus target price of $55.50, suggesting a potential downside of 3.91%. Premier has a consensus target price of $37.13, suggesting a potential upside of 16.16%. Given Premier’s higher possible upside, analysts plainly believe Premier is more favorable than ServiceMaster.
Insider & Institutional Ownership
43.5% of Premier shares are held by institutional investors. 0.2% of ServiceMaster shares are held by company insiders. Comparatively, 17.5% of Premier shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
ServiceMaster has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Premier has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.
ServiceMaster beats Premier on 7 of the 13 factors compared between the two stocks.
ServiceMaster Company Profile
ServiceMaster Global Holdings, Inc. provides residential and commercial services in the United States. The company operates through three segments: Terminix, American Home Shield, and the Franchise Services Group. The Terminix segment offers termite and pest control services, including termite remediation, annual termite inspection, and prevention treatments with damage claim guarantees, periodic pest control services, insulation services, mosquito control, crawlspace encapsulation, and wildlife exclusion. The American Home Shield segment provides home service plans that cover the repair or replacement of household systems and appliances, such as electrical, plumbing, central heating and air conditioning systems, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops. The Franchise Services Group segment offers disaster restoration, janitorial, residential cleaning, cabinet and wood furniture repair, and home inspection services through franchise under the ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic, and AmeriSpec brands. The company markets its services to homeowners and businesses through the Internet, direct mail, television and radio advertising, print advertisements, marketing partnerships, telemarketing, and various social media channels and through national sales teams, as well as through various participants in the residential real estate marketplace, such as real estate brokerages, financial institutions, and insurance carrier. The company was founded in 1929 and is headquartered in Memphis, Tennessee.
Premier Company Profile
Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. The company operates through two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and document shredding services and software-as-a-service informatics products. This segment also engages in the Integrated Pharmacy business, which provides traditional pharmacy dispensing and integrated pharmacy services; direct sourcing business; and provision of ASCEND Collaborative service for members to receive group purchasing programs, tiers, and prices, as well as managed services. The Performance Services segment offers PremierConnect for members to address existing cost and quality imperatives, help them manage a value-based care reimbursement model and support their regulatory reporting framework; and performance improvement collaborative, advisory, and government and insurance management services. This segment provides various PremierConnect domains comprising PremierConnect Quality & Regulatory domain for identifying and targeting quality improvement areas; PremierConnect Clinical Surveillance & Safety domain to enhance patient safety; PremierConnect Supply Chain & ERP domain for lowering supply chain costs; PremierConnect Operations domain, which optimizes labor management with integrated financial reporting and budgeting; and PremierConnect Enterprise Analytics, which integrates member's custom data into a hosted and integrated data warehouse and analytics platform. The company is headquartered in Charlotte, North Carolina.
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