Head to Head Analysis: Global Payments (GPN) versus Its Peers
Global Payments (NYSE: GPN) is one of 29 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it compare to its competitors? We will compare Global Payments to similar businesses based on the strength of its dividends, profitability, analyst recommendations, risk, institutional ownership, valuation and earnings.
Global Payments pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Global Payments pays out 2.5% of its earnings in the form of a dividend. As a group, “Transaction & Payment Services” companies pay a dividend yield of 1.9% and pay out 58.0% of their earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for Global Payments and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Payments Competitors||151||801||1084||21||2.47|
Global Payments presently has a consensus target price of $97.60, suggesting a potential upside of 2.07%. As a group, “Transaction & Payment Services” companies have a potential upside of 11.66%. Given Global Payments’ competitors higher probable upside, analysts plainly believe Global Payments has less favorable growth aspects than its competitors.
Insider and Institutional Ownership
97.8% of Global Payments shares are held by institutional investors. Comparatively, 56.7% of shares of all “Transaction & Payment Services” companies are held by institutional investors. 0.9% of Global Payments shares are held by insiders. Comparatively, 18.1% of shares of all “Transaction & Payment Services” companies 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.
This table compares Global Payments and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Payments Competitors||11.92%||18.20%||5.66%|
Risk & Volatility
Global Payments has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Global Payments’ competitors have a beta of 1.31, suggesting that their average share price is 31% more volatile than the S&P 500.
Valuation & Earnings
This table compares Global Payments and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Global Payments||$4.19 billion||$1.15 billion||58.66|
|Global Payments Competitors||$1.74 billion||$513.51 million||28.31|
Global Payments has higher revenue and earnings than its competitors. Global Payments is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Global Payments competitors beat Global Payments on 8 of the 15 factors compared.
About Global Payments
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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