Net 1 UEPS Technologies (UEPS) versus Global Payments (GPN) Financial Analysis
Net 1 UEPS Technologies (NASDAQ: UEPS) and Global Payments (NYSE:GPN) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Global Payments pays an annual dividend of $0.05 per share and has a dividend yield of 0.1%. Net 1 UEPS Technologies does not pay a dividend. Global Payments pays out 3.1% of its earnings in the form of a dividend.
Insider and Institutional Ownership
58.2% of Net 1 UEPS Technologies shares are held by institutional investors. Comparatively, 97.9% of Global Payments shares are held by institutional investors. 6.3% of Net 1 UEPS Technologies shares are held by company insiders. Comparatively, 0.9% of Global Payments shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Net 1 UEPS Technologies and Global Payments’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Net 1 UEPS Technologies||$610.07 million||0.84||$148.02 million||$1.35||6.80|
|Global Payments||$4.19 billion||3.46||$1.15 billion||$1.63||58.34|
Global Payments has higher revenue and earnings than Net 1 UEPS Technologies. Net 1 UEPS Technologies is trading at a lower price-to-earnings ratio than Global Payments, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Net 1 UEPS Technologies has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Global Payments has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
This is a summary of current ratings for Net 1 UEPS Technologies and Global Payments, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Net 1 UEPS Technologies||0||0||0||0||N/A|
Global Payments has a consensus price target of $96.11, indicating a potential upside of 1.07%. Given Global Payments’ higher possible upside, analysts clearly believe Global Payments is more favorable than Net 1 UEPS Technologies.
This table compares Net 1 UEPS Technologies and Global Payments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Net 1 UEPS Technologies||11.96%||14.06%||7.24%|
Global Payments beats Net 1 UEPS Technologies on 11 of the 15 factors compared between the two stocks.
About Net 1 UEPS Technologies
Net 1 UEPS Technologies, Inc. is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.
About Global Payments
Global Payments Inc. is a provider of payment technology services. The Company provides payment and digital commerce solutions. The Company operates through three segments: North America, Europe and Asia-Pacific. The Company’s segments primarily provide payment solutions for credit cards, debit cards, electronic payments and check-related services. The Company’s segments target customers in various industries, including financial services, gaming, government, healthcare, professional services, restaurants, retail, universities, not-for-profit organizations and utilities. It provides services across a range of channels to merchants and partners in over 30 countries throughout North America, Europe, the Asia-Pacific region and Brazil. The Company performs a series of services, including authorization, electronic draft capture, file transfers to facilitate funds settlement and certain exception-based, back office support services, such as chargeback and retrieval resolution.
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