Global Payments (NYSE: GPN) and Moneygram International (NASDAQ:MGI) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
This table compares Global Payments and Moneygram International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Global Payments and Moneygram International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Global Payments||$4.19 billion||3.53||$1.15 billion||$1.63||59.50|
|Moneygram International||$1.63 billion||0.52||$226.70 million||$0.48||32.52|
Global Payments has higher revenue and earnings than Moneygram International. Moneygram International is trading at a lower price-to-earnings ratio than Global Payments, indicating that it is currently the more affordable of the two stocks.
Global Payments pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Moneygram International does not pay a dividend. Global Payments pays out 2.5% of its earnings in the form of a dividend.
This is a summary of recent ratings and price targets for Global Payments and Moneygram International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Global Payments presently has a consensus target price of $97.60, suggesting a potential upside of 0.63%. Moneygram International has a consensus target price of $14.16, suggesting a potential downside of 9.29%. Given Global Payments’ stronger consensus rating and higher probable upside, research analysts clearly believe Global Payments is more favorable than Moneygram International.
Risk and Volatility
Global Payments has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Moneygram International has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500.
Insider and Institutional Ownership
97.8% of Global Payments shares are held by institutional investors. Comparatively, 93.9% of Moneygram International shares are held by institutional investors. 0.9% of Global Payments shares are held by insiders. Comparatively, 49.5% of Moneygram International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Global Payments beats Moneygram International on 13 of the 16 factors compared between the two stocks.
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.
Moneygram International Company Profile
MoneyGram International, Inc. (MoneyGram) is a global provider of money transfer services. The Company operates through two segments: Global Funds Transfer and Financial Paper Products. The Company offers its services under the MoneyGram brand. The Company’s Global Funds Transfer Segment provides money transfer services and bill payment services primarily to unbanked and underbanked consumers. The Financial Paper Products Segment provides money orders to consumers through its agents and financial institutions located across the United States and Puerto Rico. The Company’s offerings include money transfers, bill payment services, money order services and official check processing. The Company’s money transfer services enable its consumers to send and receive funds across the world through its global network of locations. The Company also offers Digital/Self-Service solutions, such as moneygram.com, mobile solutions, account deposit and kiosk-based services.
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