Global Payments (NYSE:GPN) and Paypoint (OTCMKTS:PYPTF) Head to Head Analysis

Paypoint (OTCMKTS:PYPTF) and Global Payments (NYSE:GPN) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Earnings and Valuation

This table compares Paypoint and Global Payments”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paypoint	$391.23 million	1.17	$24.49 million	N/A	N/A
Global Payments	$10.11 billion	1.89	$1.57 billion	$7.12	11.35

Global Payments has higher revenue and earnings than Paypoint.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Paypoint and Global Payments, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paypoint	0	0	0	0	0.00
Global Payments	1	15	7	2	2.40

Global Payments has a consensus price target of $102.29, indicating a potential upside of 26.59%. Given Global Payments’ stronger consensus rating and higher probable upside, analysts clearly believe Global Payments is more favorable than Paypoint.

Profitability

This table compares Paypoint and Global Payments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paypoint	N/A	N/A	N/A
Global Payments	19.68%	12.66%	6.12%

Volatility & Risk

Paypoint has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Global Payments has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Insider and Institutional Ownership

89.8% of Global Payments shares are held by institutional investors. 1.0% of Global Payments shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Global Payments beats Paypoint on 13 of the 13 factors compared between the two stocks.

About Paypoint

PayPoint plc engages in the provision of payments and banking, shopping, and e-commerce services and products in the United Kingdom. The company operates through two segments: PayPoint and Love2shop. The PayPoint segment provides card payment services to retailers, including leased payment devices; EPoS; ATM cash machines; SIM cards sales; receipt advertising; bill payment services and cash top-ups to individual consumers; parcel delivery and collection services; retailer service fees solutions; and digital payment services, as well as cash through to digital services. The segment offers its products under PayPoint One, eMoney, MultiPay, CashOut, and Direct Debits platforms. The Love2shop segment is involved in the provision of shopping vouchers, cards, and e-codes which customers may redeem with participating retailers; and Christmas savings club, to which customers make regular payments throughout the year to help spread the cost of Christmas, before converting to a voucher. It serves consumers, SMEs, and convenience retailers in the commercial, not-for-profit, and public sectors. The company was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.

About Global Payments

Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, account payables, and electronic payment alternatives solutions for businesses and governments. It 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. The company was founded in 1967 and is headquartered in Atlanta, Georgia.