Critical Survey: Euronet Worldwide (EEFT) versus Global Payments (GPN)
Euronet Worldwide (NASDAQ: EEFT) and Global Payments (NYSE:GPN) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.
Insider and Institutional Ownership
94.0% of Euronet Worldwide shares are owned by institutional investors. Comparatively, 97.9% of Global Payments shares are owned by institutional investors. 7.7% of Euronet Worldwide shares are owned by company insiders. Comparatively, 0.9% of Global Payments shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for Euronet Worldwide and Global Payments, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Euronet Worldwide presently has a consensus price target of $99.75, suggesting a potential upside of 1.35%. Global Payments has a consensus price target of $97.18, suggesting a potential upside of 0.20%. Given Euronet Worldwide’s stronger consensus rating and higher probable upside, research analysts plainly believe Euronet Worldwide is more favorable than Global Payments.
This table compares Euronet Worldwide and Global Payments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Euronet Worldwide has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Global Payments has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
Global Payments pays an annual dividend of $0.05 per share and has a dividend yield of 0.1%. Euronet Worldwide does not pay a dividend. Global Payments pays out 3.1% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Euronet Worldwide and Global Payments’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Euronet Worldwide||$2.05 billion||2.52||$345.38 million||$3.09||31.85|
|Global Payments||$4.19 billion||3.53||$1.15 billion||$1.63||59.50|
Global Payments has higher revenue and earnings than Euronet Worldwide. Euronet Worldwide is trading at a lower price-to-earnings ratio than Global Payments, indicating that it is currently the more affordable of the two stocks.
Euronet Worldwide beats Global Payments on 9 of the 16 factors compared between the two stocks.
Euronet Worldwide Company Profile
Euronet Worldwide, Inc. is an electronic payments provider. The Company offers payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers. Its product offerings include automated teller machine (ATM), point-of-sale (POS), card outsourcing, card issuing and merchant acquiring services, electronic distribution of prepaid mobile airtime and other electronic payment products. It operates in three segments: EFT Processing Segment provides electronic payment solutions consisting of ATM cash withdrawal and deposit services, outsourced ATM and POS management solutions, and credit and debit card outsourcing; epay Segment provides electronic distribution and processing of prepaid mobile airtime and other electronic payment products and collection services, and Money Transfer Segment provides global consumer-to-consumer money transfer services and global account-to-account money transfer services.
Global Payments Company Profile
Global Payments Inc. is a provider of payment technology services. The Company provides payment and digital commerce solutions. The Company operates through three segments: North America, Europe and Asia-Pacific. The Company’s segments primarily provide payment solutions for credit cards, debit cards, electronic payments and check-related services. The Company’s segments target customers in various industries, including financial services, gaming, government, healthcare, professional services, restaurants, retail, universities, not-for-profit organizations and utilities. It provides services across a range of channels to merchants and partners in over 30 countries throughout North America, Europe, the Asia-Pacific region and Brazil. The Company performs a series of services, including authorization, electronic draft capture, file transfers to facilitate funds settlement and certain exception-based, back office support services, such as chargeback and retrieval resolution.
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