Head to Head Analysis: Paypal (PYPL) & Global Payments (GPN)
Paypal (NASDAQ:PYPL) and Global Payments (NYSE:GPN) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
Global Payments pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Paypal does not pay a dividend. Global Payments pays out 0.8% of its earnings in the form of a dividend.
This table compares Paypal and Global Payments’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Paypal||$15.45 billion||8.20||$2.06 billion||$1.79||60.38|
|Global Payments||$3.37 billion||6.48||$452.05 million||$5.19||26.63|
Paypal has higher revenue and earnings than Global Payments. Global Payments is trading at a lower price-to-earnings ratio than Paypal, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
81.3% of Paypal shares are held by institutional investors. Comparatively, 98.8% of Global Payments shares are held by institutional investors. 0.2% of Paypal shares are held by insiders. Comparatively, 0.9% of Global Payments shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for Paypal and Global Payments, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Paypal presently has a consensus price target of $99.18, suggesting a potential downside of 8.23%. Global Payments has a consensus price target of $134.80, suggesting a potential downside of 2.46%. Given Global Payments’ higher possible upside, analysts clearly believe Global Payments is more favorable than Paypal.
Risk and Volatility
Paypal has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Global Payments has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.
This table compares Paypal and Global Payments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Global Payments beats Paypal on 9 of the 16 factors compared between the two stocks.
PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and iZettle products. The company's Payments Platform allows consumers to send payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. It also offers gateway services that enable merchants to accept payments online with credit or debit cards. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.
About Global Payments
Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments. The company operates in three segments: North America, Europe, and Asia-Pacific. It offers authorization services, settlement and funding services, customer support and help-desk functions, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and statements, and online reporting services. The company also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added services, such as analytic and engagement tools, as well as payroll services. In addition, it offers credit and debit card transaction processing services for various international card brands, including American Express, Discover Card, JCB, MasterCard, UnionPay International, and Visa; and non-traditional payment methods, as well as certain domestic debit networks, such as Interac in Canada. Further, the company provides e-commerce and omnichannel solutions; and gaming solutions to licensed gaming operators. It serves customers in various industries comprising education, restaurant, event management, hospitality, retail, healthcare, convenience stores and petroleum, professional services, automotive, and lodging. The company markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations in 32 countries of North America, Europe, the Asia-Pacific region, and Brazil. Global Payments Inc. was founded in 1967 and is headquartered in Atlanta, Georgia.
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