USA Technologies (USAT) and Diebold Nixdorf (DBD) Head-To-Head Survey

Diebold Nixdorf (NYSE: DBD) and USA Technologies (NASDAQ:USAT) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Profitability

This table compares Diebold Nixdorf and USA Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diebold Nixdorf -5.36% 12.89% 1.34%
USA Technologies -8.83% 3.60% 2.30%

Earnings & Valuation

This table compares Diebold Nixdorf and USA Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diebold Nixdorf $4.61 billion 0.21 -$233.10 million $1.13 11.19
USA Technologies $104.09 million 6.03 -$1.85 million ($0.02) -585.00

USA Technologies has lower revenue, but higher earnings than Diebold Nixdorf. USA Technologies is trading at a lower price-to-earnings ratio than Diebold Nixdorf, indicating that it is currently the more affordable of the two stocks.

Dividends

Diebold Nixdorf pays an annual dividend of $0.40 per share and has a dividend yield of 3.2%. USA Technologies does not pay a dividend. Diebold Nixdorf pays out 35.4% of its earnings in the form of a dividend.

Risk & Volatility

Diebold Nixdorf has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, USA Technologies has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Institutional and Insider Ownership

58.4% of USA Technologies shares are held by institutional investors. 0.7% of Diebold Nixdorf shares are held by insiders. Comparatively, 4.4% of USA Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Diebold Nixdorf and USA Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diebold Nixdorf 0 5 1 0 2.17
USA Technologies 0 0 4 0 3.00

Diebold Nixdorf presently has a consensus price target of $19.80, suggesting a potential upside of 56.52%. USA Technologies has a consensus price target of $12.50, suggesting a potential upside of 6.84%. Given Diebold Nixdorf’s higher possible upside, analysts clearly believe Diebold Nixdorf is more favorable than USA Technologies.

About Diebold Nixdorf

Diebold Nixdorf, Incorporated provides connected commerce solutions to financial institutions and retailers in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. The company operates in three segments: Services, Software, and Systems. The Services segment provides product-related services, such as first and second line maintenance, preventive maintenance, and on-demand services; and managed and outsourcing services, including store lifecycle management, self-service fleet management, branch lifecycle management, automated teller machine (ATM) as-a-service, and managed mobility services, as well as cash management services. This segment offers services to ATMs, point of sale (POS) terminals, self-checkout systems (SCO), and other distributed assets. The Software segment provides front-end applications for consumer connection points; and back-end platforms that manage channel transactions, operations, and integration. Its products include Vynamic Engage, a cloud-based software-as-a-service solution that enables a 360-degree view of customer behavior at various touchpoints; Vynamic Mobile Shopper, which offers mobile self-scanning capabilities through retail-hardened devices and consumer smartphones; and Vynamic Mobile Retail, a mobile scan and go application that includes personalization features of Vynamic Engage. The Systems segment offers cash recyclers and dispensers, intelligent deposit terminals, teller automation and kiosk technologies, and physical security solutions for banking customers; and modular, integrated, and mobile POS systems, as well as printers, scales, mobile scanners, banknote and coin processing systems, and self-checkout terminals and ordering kiosks for retail customers. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf, Incorporated in December 2016. Diebold Nixdorf, Incorporated was founded in 1859 and is based in North Canton, Ohio.

About USA Technologies

USA Technologies, Inc. provides wireless networking, cashless transactions, asset monitoring, and other value-added services in the United States and internationally. It designs and markets systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services. The company's ePort Connect solution offers various POS options, card processing, wireless connectivity, customer/consumer, online sales reporting, M2M telemetry and DEX data transfer, over-the-air update capabilities, deployment planning, and value-added services, as well as planning, project management, installation support, marketing, and performance evaluation services. The company's products include ePort, a device that is used in self-service, unattended markets, such as vending, amusement and arcade, and various other kiosk applications, as well as facilitates cashless payments by capturing payment information and transmitting it to its network for authorization with the payment system. It primarily serves small ticket, and beverage and food vending industries, as well as unattended point of sale markets, including amusement, commercial laundry, kiosk, and other. USA Technologies, Inc. was founded in 1992 and is headquartered in Malvern, Pennsylvania.

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