Cardtronics (NASDAQ: CATM) and Worldpay (NYSE:WP) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Insider & Institutional Ownership
97.3% of Cardtronics shares are held by institutional investors. 1.2% of Cardtronics shares are held by insiders. Comparatively, 1.3% of Worldpay shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Cardtronics and Worldpay’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Cardtronics and Worldpay’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cardtronics||$1.51 billion||0.71||-$145.35 million||($3.18)||-7.28|
|Worldpay||$3.58 billion||3.87||$213.20 million||$1.44||54.17|
Worldpay has higher revenue and earnings than Cardtronics. Cardtronics is trading at a lower price-to-earnings ratio than Worldpay, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Cardtronics and Worldpay, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cardtronics currently has a consensus price target of $27.25, suggesting a potential upside of 17.76%. Worldpay has a consensus price target of $82.97, suggesting a potential upside of 6.35%. Given Cardtronics’ higher possible upside, equities analysts plainly believe Cardtronics is more favorable than Worldpay.
Risk & Volatility
Cardtronics has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Worldpay has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.
Worldpay beats Cardtronics on 12 of the 15 factors compared between the two stocks.
Cardtronics plc, formerly Cardtronics, Inc., provides automated consumer financial services through its network of automated teller machines (ATMS) and multi-function financial services kiosks. The Company’s operations consists of its North America, Europe, and Corporate & Other segments. Its ATM operations in the United States, Canada, Mexico and Puerto Rico are included in its North America segment. Its ATM operations in the United Kingdom, Ireland, Germany, Poland, Spain and i-design are included in its Europe segment. Its transaction processing operations, which service its North American and European operations, along with external customers, and the Company’s corporate general and administrative functions comprise the Corporate & Other segment. As of December 31, 2016, it provided services to approximately 203,000 ATMs throughout the United States (including the United States territory of Puerto Rico), the United Kingdom, Ireland, Germany, Poland, Spain, Canada and Mexico.
Worldpay, Inc., formerly Vantiv, Inc., is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services.
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