Heartland Payment Systems (NYSE: HPY) is one of 28 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it contrast to its peers? We will compare Heartland Payment Systems to related businesses based on the strength of its risk, valuation, institutional ownership, analyst recommendations, dividends, profitability and earnings.

Insider and Institutional Ownership

58.4% of shares of all “Transaction & Payment Services” companies are owned by institutional investors. 17.9% of shares of all “Transaction & Payment Services” companies are owned by 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.

Dividends

Heartland Payment Systems pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Heartland Payment Systems pays out 17.6% of its earnings in the form of a dividend. As a group, “Transaction & Payment Services” companies pay a dividend yield of 0.9% and pay out 36.3% of their earnings in the form of a dividend. Heartland Payment Systems has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Heartland Payment Systems and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heartland Payment Systems 0 0 0 0 N/A
Heartland Payment Systems Competitors 128 734 1065 15 2.50

As a group, “Transaction & Payment Services” companies have a potential upside of 5.10%. Given Heartland Payment Systems’ peers higher possible upside, analysts plainly believe Heartland Payment Systems has less favorable growth aspects than its peers.

Profitability

This table compares Heartland Payment Systems and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heartland Payment Systems 3.25% 27.90% 6.09%
Heartland Payment Systems Competitors 8.77% 12.40% 3.99%

Volatility and Risk

Heartland Payment Systems has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Heartland Payment Systems’ peers have a beta of 1.26, suggesting that their average stock price is 26% more volatile than the S&P 500.

Earnings and Valuation

This table compares Heartland Payment Systems and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Heartland Payment Systems N/A N/A 45.41
Heartland Payment Systems Competitors $2.36 billion $197.44 million 1,060.26

Heartland Payment Systems’ peers have higher revenue and earnings than Heartland Payment Systems. Heartland Payment Systems is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Heartland Payment Systems peers beat Heartland Payment Systems on 8 of the 11 factors compared.

About Heartland Payment Systems

Heartland Payment Systems, Inc. is a United States-based company that provides payment processing services to merchants. The Company’s electronic payment processing services facilitate the exchange of information and funds between merchants and cardholders’ financial institutions. Its segments include Payment Processing, which offers card payment processing and related services to its small and medium-sized enterprise merchants and Network Services merchants; Campus Solutions, which offers payment processing, integrated commerce solutions, loan services and open- and closed-loop payment solutions to institutions of higher education; Heartland School Solutions, which offers school nutrition and point of sale solutions and associated payment solutions to K-12 schools; Heartland Payroll Solutions, which provides payroll processing and related tax filing services, and Other, including integrated payments solutions for small ticket merchants, and loyalty and gift card marketing solutions.

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