Euronet Worldwide (NASDAQ:EEFT – Get Free Report) and Walker & Dunlop (NYSE:WD – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
Profitability
This table compares Euronet Worldwide and Walker & Dunlop’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Euronet Worldwide | 6.63% | 28.60% | 5.67% |
| Walker & Dunlop | 2.94% | 7.25% | 2.31% |
Risk and Volatility
Euronet Worldwide has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Walker & Dunlop has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Euronet Worldwide | 1 | 3 | 3 | 0 | 2.29 |
| Walker & Dunlop | 1 | 0 | 5 | 0 | 2.67 |
Euronet Worldwide currently has a consensus target price of $94.00, suggesting a potential upside of 47.83%. Walker & Dunlop has a consensus target price of $64.00, suggesting a potential upside of 87.99%. Given Walker & Dunlop’s stronger consensus rating and higher probable upside, analysts plainly believe Walker & Dunlop is more favorable than Euronet Worldwide.
Insider & Institutional Ownership
91.6% of Euronet Worldwide shares are owned by institutional investors. Comparatively, 81.0% of Walker & Dunlop shares are owned by institutional investors. 12.2% of Euronet Worldwide shares are owned by insiders. Comparatively, 4.0% of Walker & Dunlop shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Euronet Worldwide and Walker & Dunlop”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Euronet Worldwide | $4.24 billion | 0.57 | $309.50 million | $6.37 | 9.98 |
| Walker & Dunlop | $1.23 billion | 0.95 | $57.08 million | $1.12 | 30.40 |
Euronet Worldwide has higher revenue and earnings than Walker & Dunlop. Euronet Worldwide is trading at a lower price-to-earnings ratio than Walker & Dunlop, indicating that it is currently the more affordable of the two stocks.
Summary
Euronet Worldwide beats Walker & Dunlop on 8 of the 14 factors compared between the two stocks.
About Euronet Worldwide
Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. It operates through three segments: Electronic Fund Transfer Processing, epay, and Money Transfer. The Electronic Fund Transfer 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 and prepaid card outsourcing, card issuing, and merchant acquiring services. It also offers ATM and POS currency conversion, ATM surcharge, advertising, customer relationship management, mobile top-up, bill payment, fraud management, foreign remittance and cardless payout, banknote recycling, and tax-refund services; and integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems. The epay segment distributes and processes prepaid mobile airtime and other electronic payment products; and provides payment processing services for various prepaid products, cards, and services, as well as vouchers and physical gift fulfillment, and gift card distribution and processing services. This segment operates a network of approximately 821,000 POS terminals. The Money Transfer segment offers consumer-to-consumer and account-to-account money transfer, customers bill payment, check cashing, foreign currency exchange, mobile top-up, and cash management and foreign currency risk management services, as well as payment alternatives, such as money orders and prepaid debit cards. 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.
About Walker & Dunlop
Walker & Dunlop, Inc. is a holding company, which engages in the provision of commercial real estate and finance services. It operates through the following segments: Capital Markets, Servicing and Asset Management, and Corporate. The Capital Markets segment offers a comprehensive range of commercial real estate finance products to customers. The Servicing and Asset Management segment includes servicing and asset-managing and managing third-party capital investments. The Corporate segment consists primarily of the company’s treasury operations and other corporate-level activities. The company was founded by Oliver Walker and Laird Dunlop in 1937 and is headquartered in Bethesda, MD.
Receive News & Ratings for Euronet Worldwide Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Euronet Worldwide and related companies with MarketBeat.com's FREE daily email newsletter.
