Cardtronics (NASDAQ: MGI) and Moneygram International (NASDAQ:MGI) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
This table compares Cardtronics and Moneygram International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for Cardtronics and Moneygram International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cardtronics currently has a consensus price target of $27.50, suggesting a potential downside of 13.90%. Moneygram International has a consensus price target of $6.50, suggesting a potential upside of 10.36%. Given Moneygram International’s higher possible upside, analysts clearly believe Moneygram International is more favorable than Cardtronics.
Institutional & Insider Ownership
86.1% of Moneygram International shares are owned by institutional investors. 0.6% of Cardtronics shares are owned by insiders. Comparatively, 45.4% of Moneygram International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Cardtronics and Moneygram International’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||0.98||-$145.35 million||$2.77||11.53|
|Moneygram International||$1.60 billion||0.20||-$29.80 million||$0.88||6.69|
Moneygram International has higher revenue and earnings than Cardtronics. Moneygram International is trading at a lower price-to-earnings ratio than Cardtronics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Cardtronics has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Moneygram International has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500.
Cardtronics plc provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. The company offers cash dispensing and bank balance inquiries; and financial related services to cardholders, as well as ATM management and ATM equipment-related services to large retail merchants, smaller retailers, and operators of facilities, such as shopping malls, airports, and train stations. It also provides transaction processing, cash and cash delivery management, supply, and telecommunications, as well as routine and technical maintenance services for ATMs; and owns and operates electronic funds transfer transaction processing platforms that offer transaction processing services to its network of ATMS, as well as other ATMs under managed services arrangements. In addition, the company provides processing services for issuers of debit cards; and owns and operates Allpoint network, a surcharge-free ATM network, which offers surcharge-free ATM access to participating banks, credit unions, and stored-value debit card issuers. As of December 31, 2017, it provided services to approximately 230,000 ATMs in North America, Europe, Africa, Australia, and New Zealand. The company was founded in 1989 and is headquartered in Houston, Texas.
About Moneygram International
MoneyGram International, Inc., together with its subsidiaries, provides money transfer services in the United States and internationally. The company operates through two segments, Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment offers 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; and official check outsourcing services for financial institutions. This segment sells its money orders under the MoneyGram brand and on a private label or co-branded basis with retail and financial institution. The company also offers digital solutions, such as moneygram.com, mobile solutions, account deposit, and kiosk-based services. MoneyGram International, Inc. was founded in 1926 and is based in Dallas, Texas.
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