First Data Corporation (NYSE: FDC) and QIWI PLC (NASDAQ:QIWI) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitabiliy, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of recent ratings and target prices for First Data Corporation and QIWI PLC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Data Corporation 0 8 19 0 2.70
QIWI PLC 0 2 1 0 2.33

First Data Corporation presently has a consensus target price of $18.26, indicating a potential downside of 1.67%. QIWI PLC has a consensus target price of $22.67, indicating a potential upside of 11.88%. Given QIWI PLC’s higher possible upside, analysts plainly believe QIWI PLC is more favorable than First Data Corporation.

Dividends

QIWI PLC pays an annual dividend of $0.76 per share and has a dividend yield of 3.8%. First Data Corporation does not pay a dividend. QIWI PLC pays out 110.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares First Data Corporation and QIWI PLC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
First Data Corporation $7.85 billion 2.17 $2.75 billion $0.56 33.16
QIWI PLC $591.02 million 2.08 $179.77 million $0.69 29.36

First Data Corporation has higher revenue and earnings than QIWI PLC. QIWI PLC is trading at a lower price-to-earnings ratio than First Data Corporation, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

First Data Corporation has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, QIWI PLC has a beta of 3.42, suggesting that its share price is 242% more volatile than the S&P 500.

Institutional and Insider Ownership

36.5% of First Data Corporation shares are owned by institutional investors. Comparatively, 14.8% of QIWI PLC shares are owned by institutional investors. 6.3% of First Data Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares First Data Corporation and QIWI PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Data Corporation 4.41% 26.15% 2.93%
QIWI PLC 14.27% 23.38% 13.06%

Summary

First Data Corporation beats QIWI PLC on 9 of the 16 factors compared between the two stocks.

First Data Corporation Company Profile

First Data Corporation is a provider of commerce-enabling technology and solutions for merchants, financial institutions and card issuers. The Company’s segments are Global Business Solutions (GBS), Global Financial Solutions (GFS), Network & Security Solutions (NSS), and Corporate. The GBS segment provides businesses of all sizes and types with a range of solutions at the point of sale, including merchant acquiring, e-commerce, mobile commerce, point-of-sale, and other business solutions. The GFS segment provides financial institutions, which include bank and non-bank issuers, such as retailers with card portfolios, with a range of solutions that enable them to offer financial products and solutions to their customers. The NSS segment provides a range of network solutions and security, risk and fraud management solutions to business and financial institution clients in its GBS and GFS segments, and to financial institutions, businesses, governments, processors and other clients.

QIWI PLC Company Profile

QIWI plc is a provider of payment services in Russia and the Commonwealth of Independent States (CIS). The Company’s network enables payment services across physical, online and mobile channels. The Company operates in target markets and customer segments. As of December 31, 2016, the Company had deployed over 17.2 million virtual wallets, over 162,000 kiosks and terminals, and enabled merchants to accept over Russian rubles 70 billion cash and electronic payments monthly. The Company’s consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or virtual environments interchangeably. The Company provides integrated network of physical distribution points and virtual wallets, as well as payment channels and methods that enable consumers to deposit cash, convert it into a digital form and transfer the funds to a virtual wallet or pay for any merchant in its network.

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