Analyzing Verra Mobility (NASDAQ:VRRM) and ModivCare (NASDAQ:MODV)

ModivCare (NASDAQ:MODV) and Verra Mobility (NASDAQ:VRRM) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Profitability

This table compares ModivCare and Verra Mobility’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ModivCare 2.40% 24.20% 12.07%
Verra Mobility 4.17% 26.82% 6.54%

Analyst Recommendations

This is a summary of current ratings and recommmendations for ModivCare and Verra Mobility, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ModivCare 0 0 0 0 N/A
Verra Mobility 0 1 3 0 2.75

Verra Mobility has a consensus price target of $14.75, indicating a potential downside of 1.40%. Given Verra Mobility’s higher probable upside, analysts plainly believe Verra Mobility is more favorable than ModivCare.

Insider & Institutional Ownership

99.1% of ModivCare shares are owned by institutional investors. Comparatively, 89.8% of Verra Mobility shares are owned by institutional investors. 7.5% of ModivCare shares are owned by insiders. Comparatively, 0.9% of Verra Mobility shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

ModivCare has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Verra Mobility has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Earnings and Valuation

This table compares ModivCare and Verra Mobility’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ModivCare $1.51 billion 1.31 $970,000.00 $1.65 84.57
Verra Mobility $416.72 million 5.83 $33.34 million $0.65 23.02

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

Summary

Verra Mobility beats ModivCare on 8 of the 13 factors compared between the two stocks.

ModivCare Company Profile

ModivCare Inc., a technology-enabled healthcare services company, provides a suite of integrated supportive care solutions for public and private payors and patients. It offers non-emergency medical transportation services for Medicaid or Medicare eligible members, whose limited mobility or financial resources hinder their ability to access necessary healthcare and social services. The company also provides in-home and on-site care optimization services, including comprehensive health assessments through a network of community-based clinicians and a fleet of mobile health clinics. The company was formerly known as The Providence Service Corporation and changed its name to ModivCare Inc. in January 2021. The company was founded in 1996 and is headquartered in Denver, Colorado.

Verra Mobility Company Profile

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Canada, and Europe. It operates through two segments, Government Solutions and Commercial Services. The Government Solutions segment offers automated safety solutions, including services and technologies that enable photo enforcement through road safety camera programs, which detects and process traffic violations related to red light, speed, school bus, and city bus lanes. This segment serves municipalities, counties, school districts, and law enforcement agencies. The Commercial Services segment provides automated toll and violations management, and title and registration solutions to rental car companies, fleet management companies, and other large fleet owners. The company was incorporated in 2016 and is headquartered in Mesa, Arizona.

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