Euronet Worldwide (NASDAQ: EEFT) and First Data Corporation (NYSE:FDC) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

94.0% of Euronet Worldwide shares are owned by institutional investors. Comparatively, 39.1% of First Data Corporation shares are owned by institutional investors. 7.7% of Euronet Worldwide shares are owned by insiders. Comparatively, 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 Euronet Worldwide and First Data Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Euronet Worldwide 8.23% 22.32% 7.95%
First Data Corporation 4.66% 26.25% 3.05%

Analyst Recommendations

This is a breakdown of current ratings for Euronet Worldwide and First Data Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Euronet Worldwide 0 0 5 0 3.00
First Data Corporation 0 9 19 0 2.68

Euronet Worldwide currently has a consensus target price of $99.75, indicating a potential upside of 1.35%. First Data Corporation has a consensus target price of $18.88, indicating a potential upside of 5.74%. Given First Data Corporation’s higher probable upside, analysts clearly believe First Data Corporation is more favorable than Euronet Worldwide.

Risk and Volatility

Euronet Worldwide has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, First Data Corporation has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Valuation and Earnings

This table compares Euronet Worldwide 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
Euronet Worldwide $2.05 billion 2.52 $345.38 million $3.09 31.85
First Data Corporation $7.91 billion 0.86 $2.79 billion $0.59 30.26

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

Summary

Euronet Worldwide beats First Data Corporation on 8 of the 14 factors compared between the two stocks.

Euronet Worldwide Company Profile

Euronet Worldwide, Inc. is an electronic payments provider. The Company offers payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers. Its product offerings include automated teller machine (ATM), point-of-sale (POS), card outsourcing, card issuing and merchant acquiring services, electronic distribution of prepaid mobile airtime and other electronic payment products. It operates in three segments: EFT Processing Segment provides electronic payment solutions consisting of ATM cash withdrawal and deposit services, outsourced ATM and POS management solutions, and credit and debit card outsourcing; epay Segment provides electronic distribution and processing of prepaid mobile airtime and other electronic payment products and collection services, and Money Transfer Segment provides global consumer-to-consumer money transfer services and global account-to-account money transfer services.

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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