ServiceMaster Global Holdings (NYSE: SERV) and Lionbridge Technologies (NASDAQ:LIOX) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitabiliy, dividends, risk and earnings.

Volatility and Risk

ServiceMaster Global Holdings has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Lionbridge Technologies has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Insider and Institutional Ownership

63.3% of Lionbridge Technologies shares are held by institutional investors. 1.2% of ServiceMaster Global Holdings shares are held by insiders. Comparatively, 11.4% of Lionbridge Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares ServiceMaster Global Holdings and Lionbridge Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ServiceMaster Global Holdings $2.84 billion 2.08 $665.00 million $1.66 26.65
Lionbridge Technologies N/A N/A N/A $0.18 31.94

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

Profitability

This table compares ServiceMaster Global Holdings and Lionbridge Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ServiceMaster Global Holdings 7.92% 40.74% 5.17%
Lionbridge Technologies 1.97% 12.05% 3.60%

Analyst Ratings

This is a breakdown of current ratings and target prices for ServiceMaster Global Holdings and Lionbridge Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ServiceMaster Global Holdings 2 0 5 0 2.43
Lionbridge Technologies 0 2 1 0 2.33

ServiceMaster Global Holdings currently has a consensus price target of $43.57, suggesting a potential downside of 1.51%. Lionbridge Technologies has a consensus price target of $6.38, suggesting a potential upside of 10.87%. Given Lionbridge Technologies’ higher probable upside, analysts plainly believe Lionbridge Technologies is more favorable than ServiceMaster Global Holdings.

Summary

ServiceMaster Global Holdings beats Lionbridge Technologies on 7 of the 11 factors compared between the two stocks.

About ServiceMaster Global Holdings

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 Lionbridge Technologies

Lionbridge Technologies, Inc. is a United States-based company, which provides translation, online marketing, global content management and application testing solutions. The Company enables more than 800 brands to manage international market share and engage their customers in local markets across the world. It offers various solutions, such as Language Translation Services, Global Marketing Services, Website Translation and Localization, Engineering, Technical Publications and Training, Testing Services and Translation Technology. Its portfolio of language translation services includes Website Translation, Software Localization, Real-Time Translation for Chat and Forums, and Interpreter Services. Its Data Management Services allow companies to manage unprocessed data from multiple languages. Its Crowd translation of user-generated content (blogs, messages, surveys, reviews) allows clients to repurpose pieces of consumer advocacy for a new target language.

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