Net 1 UEPS Technologies (NASDAQ: UEPS) and Heartland Payment Systems (NYSE:HPY) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

Heartland Payment Systems pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Net 1 UEPS Technologies does not pay a dividend. Heartland Payment Systems pays out 17.6% of its earnings in the form of a dividend. Heartland Payment Systems has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Net 1 UEPS Technologies and Heartland Payment Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Net 1 UEPS Technologies 0 0 1 0 3.00
Heartland Payment Systems 0 0 0 0 N/A

Risk and Volatility

Net 1 UEPS Technologies has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Heartland Payment Systems has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares Net 1 UEPS Technologies and Heartland Payment Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Net 1 UEPS Technologies 11.17% 13.06% 6.95%
Heartland Payment Systems 3.25% 27.90% 6.09%

Earnings and Valuation

This table compares Net 1 UEPS Technologies and Heartland Payment Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Net 1 UEPS Technologies $610.07 million 1.11 $72.95 million $1.23 9.67
Heartland Payment Systems N/A N/A N/A $2.27 45.41

Net 1 UEPS Technologies has higher revenue and earnings than Heartland Payment Systems. Net 1 UEPS Technologies is trading at a lower price-to-earnings ratio than Heartland Payment Systems, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

56.1% of Net 1 UEPS Technologies shares are owned by institutional investors. 3.2% of Net 1 UEPS Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Net 1 UEPS Technologies beats Heartland Payment Systems on 8 of the 13 factors compared between the two stocks.

About Net 1 UEPS Technologies

Net 1 UEPS Technologies, Inc. is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.

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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