Critical Analysis: First Data Corporation (FDC) and The Competition
First Data Corporation (NYSE: FDC) is one of 28 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it compare to its rivals? We will compare First Data Corporation to similar companies based off the strength of its risk, analyst recommendations, institutional ownership, dividends, earnings, profitability and valuation.
Insider and Institutional Ownership
39.1% of First Data Corporation shares are owned by institutional investors. Comparatively, 57.0% of shares of all “Transaction & Payment Services” companies are owned by institutional investors. 6.3% of First Data Corporation shares are owned by company insiders. Comparatively, 18.1% of shares of all “Transaction & Payment Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares First Data Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|First Data Corporation||$7.91 billion||$2.79 billion||31.34|
|First Data Corporation Competitors||$1.79 billion||$540.61 million||27.98|
First Data Corporation has higher revenue and earnings than its rivals. First Data Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently the more expensive than other companies in its industry.
Risk and 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, First Data Corporation’s rivals have a beta of 1.31, suggesting that their average share price is 31% more volatile than the S&P 500.
This table compares First Data Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Data Corporation||4.66%||26.25%||3.05%|
|First Data Corporation Competitors||11.98%||19.29%||5.55%|
This is a breakdown of recent ratings and price targets for First Data Corporation and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Data Corporation||0||9||19||0||2.68|
|First Data Corporation Competitors||151||801||1080||21||2.47|
First Data Corporation currently has a consensus price target of $18.88, suggesting a potential upside of 2.11%. All “Transaction & Payment Services” companies have a potential upside of 11.00%. Given First Data Corporation’s rivals higher probable upside, analysts plainly believe First Data Corporation has less favorable growth aspects than its rivals.
First Data Corporation rivals beat First Data Corporation on 7 of the 13 factors compared.
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.
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