Critical Contrast: Higher One (ONE) vs. Servicemaster Global (SERV)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Servicemaster Global and Higher One, as provided by MarketBeat.com.

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

Servicemaster Global currently has a consensus price target of $48.73, indicating a potential downside of 7.84%. Given Servicemaster Global’s higher probable upside, equities research analysts plainly believe Servicemaster Global is more favorable than Higher One.

Insider and Institutional Ownership

100.0% of Servicemaster Global shares are owned by institutional investors. 1.2% of Servicemaster Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

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

Profitability

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

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

Earnings and Valuation

This table compares Servicemaster Global and Higher One’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Servicemaster Global $2.75 billion 2.60 $155.00 million $1.73 30.56
Higher One N/A N/A N/A ($0.62) -8.31

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.

About Servicemaster Global

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.

About Higher One

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.

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