Critical Comparison: Xoom Corp (XOOM) versus First Data Corporation (FDC)
Xoom Corp (NASDAQ: XOOM) and First Data Corporation (NYSE:FDC) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.
This is a breakdown of current recommendations and price targets for Xoom Corp and First Data Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Data Corporation||0||9||19||0||2.68|
First Data Corporation has a consensus target price of $18.88, indicating a potential upside of 2.55%. Given First Data Corporation’s higher possible upside, analysts clearly believe First Data Corporation is more favorable than Xoom Corp.
This table compares Xoom Corp and First Data Corporation’s 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%|
Valuation and Earnings
This table compares Xoom Corp and First Data Corporation’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||$7.91 billion||0.88||$2.79 billion||$0.59||31.20|
First Data Corporation has higher revenue and earnings than Xoom Corp.
Insider and Institutional Ownership
39.1% of First Data Corporation shares are held by institutional investors. 6.3% of First Data Corporation shares are held by company 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.
First Data Corporation beats Xoom Corp on 8 of the 8 factors compared between the two stocks.
Xoom Corp Company Profile
Xoom Corporation (Xoom) is engaged in the digital consumer-to-consumer international money transfer business. The Company offers money transfer services from the United States to around 32 countries and its cross-border bill payment services from the United States to approximately five countries. Xoom’s solutions offer its customers a way to send money to, and pay bills for family and friends from any Internet-enabled location. The Company’s operating platform provides various solutions for transferring funds internationally, such as origination, funding, disbursement and transaction processing. The Company’s technology platform includes a customer interface which enables customers to send transactions from its Website, mobile Website or mobile application, using a computer, a tablet or a mobile phone; a risk management system; a transaction processing platform, and a disbursement integration platform. The Company provides its services under the XOOM brand.
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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