Euronet Worldwide (NASDAQ:EEFT) and Usio (NASDAQ:USIO) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility & Risk

Euronet Worldwide has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Usio has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.

Profitability

This table compares Euronet Worldwide and Usio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Euronet Worldwide 10.08% 25.78% 9.00%
Usio -14.73% -36.84% -5.90%

Valuation & Earnings

This table compares Euronet Worldwide and Usio’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Euronet Worldwide $2.54 billion 3.14 $232.85 million $5.31 28.89
Usio $25.02 million 1.89 -$3.78 million ($0.31) -9.03

Euronet Worldwide has higher revenue and earnings than Usio. Usio is trading at a lower price-to-earnings ratio than Euronet Worldwide, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

98.0% of Euronet Worldwide shares are held by institutional investors. Comparatively, 4.2% of Usio shares are held by institutional investors. 6.4% of Euronet Worldwide shares are held by insiders. Comparatively, 39.5% of Usio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Euronet Worldwide and Usio, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Euronet Worldwide 0 1 7 0 2.88
Usio 0 0 0 0 N/A

Euronet Worldwide presently has a consensus target price of $168.31, suggesting a potential upside of 9.73%. Given Euronet Worldwide’s higher probable upside, equities analysts plainly believe Euronet Worldwide is more favorable than Usio.

Summary

Euronet Worldwide beats Usio on 11 of the 13 factors compared between the two stocks.

Euronet Worldwide Company Profile

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. The company's Electronic Financial Transaction (EFT) Processing segment provides electronic payment solutions, including automated teller machine (ATM) cash withdrawal and deposit services, ATM network participation, outsourced ATM and point-of-sale (POS) management solutions, credit and debit card outsourcing, card issuing, and merchant acquiring services. This segment also offers ATM and POS currency conversion, surcharge, advertising, customer relationship management, mobile top-up, bill payment, fraud management, foreign remittance and cardless payout, banknote recycling solutions, and tax-refund services; and integrated EFT software solutions. As of December 31, 2018, it operated a network of 40,354 ATMs; and approximately 293,000 POS terminals. Its epay segment provides distribution and processing of prepaid mobile airtime and other electronic content and payment processing services for various prepaid products, cards, and services; and vouchers and physical gift fulfillment, and gift card distribution and processing services. This segment operated a network of approximately 719,000 POS terminals. The company's Money Transfer segment offers consumer-to-consumer money transfer services primarily under the Ria, AFEX Money Express, and IME brands; account-to-account money transfer services under the HiFX and xe brands; customers bill payment services; payment alternatives, such as money orders; check cashing services; foreign currency exchange and mobile top-up services; and cash management and foreign currency risk management services. The company was formerly known as Euronet Services, Inc. and changed its name to Euronet Worldwide, Inc. in August 2001. Euronet Worldwide, Inc. was founded in 1994 and is headquartered in Leawood, Kansas.

Usio Company Profile

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH processing services include Represented Check, a consumer non-sufficient funds check that is represented for payment electronically rather than through the paper check collection system; and Accounts Receivable Check Conversion, a consumer paper check payment, which is converted into an e-check. The company also offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a Website or retail services accessed through a physical terminal. In addition, it provides a proprietary Web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. The company markets and sells ACH products and services primarily through resellers, as well as markets and sells prepaid card program directly to corporations and to consumers through the Internet. Usio, Inc. has a strategic partnership agreement with Pineapple Payments. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.

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