Xoom Corp (NASDAQ: XOOM) and First Data Corporation (NYSE:FDC) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Valuation & Earnings

This table compares Xoom Corp and First Data Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Xoom Corp N/A N/A N/A N/A N/A
First Data Corporation $7.91 billion 0.86 $2.79 billion $0.59 30.44

First Data Corporation has higher revenue and earnings than Xoom Corp.

Profitability

This table compares Xoom Corp and First Data Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xoom Corp -37.74% -25.16% -21.82%
First Data Corporation 4.66% 26.25% 3.05%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Xoom Corp and First Data Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xoom Corp 0 0 0 0 N/A
First Data Corporation 0 9 19 0 2.68

First Data Corporation has a consensus price target of $18.88, indicating a potential upside of 5.12%. Given First Data Corporation’s higher possible upside, analysts clearly believe First Data Corporation is more favorable than Xoom Corp.

Institutional and Insider Ownership

39.1% of First Data Corporation shares are held by institutional investors. 6.3% of First Data Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

First Data Corporation beats Xoom Corp on 8 of the 8 factors compared between the two stocks.

Xoom Corp Company Profile

Xoom Corporation (Xoom) is engaged in the digital consumer-to-consumer international money transfer business. The Company offers money transfer services from the United States to around 32 countries and its cross-border bill payment services from the United States to approximately five countries. Xoom’s solutions offer its customers a way to send money to, and pay bills for family and friends from any Internet-enabled location. The Company’s operating platform provides various solutions for transferring funds internationally, such as origination, funding, disbursement and transaction processing. The Company’s technology platform includes a customer interface which enables customers to send transactions from its Website, mobile Website or mobile application, using a computer, a tablet or a mobile phone; a risk management system; a transaction processing platform, and a disbursement integration platform. The Company provides its services under the XOOM brand.

First Data Corporation Company Profile

First Data Corporation is a provider of commerce-enabling technology and solutions for merchants, financial institutions and card issuers. The Company’s segments are Global Business Solutions (GBS), Global Financial Solutions (GFS), Network & Security Solutions (NSS), and Corporate. The GBS segment provides businesses of all sizes and types with a range of solutions at the point of sale, including merchant acquiring, e-commerce, mobile commerce, point-of-sale, and other business solutions. The GFS segment provides financial institutions, which include bank and non-bank issuers, such as retailers with card portfolios, with a range of solutions that enable them to offer financial products and solutions to their customers. The NSS segment provides a range of network solutions and security, risk and fraud management solutions to business and financial institution clients in its GBS and GFS segments, and to financial institutions, businesses, governments, processors and other clients.

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