Critical Survey: Verifone Systems (PAY) & Endurance International Group Holdings (EIGI)
Verifone Systems (NYSE: PAY) and Endurance International Group Holdings (NASDAQ:EIGI) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.
This is a summary of recent ratings and price targets for Verifone Systems and Endurance International Group Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Endurance International Group Holdings||3||2||0||0||1.40|
Verifone Systems currently has a consensus price target of $18.86, indicating a potential downside of 8.81%. Endurance International Group Holdings has a consensus price target of $7.50, indicating a potential downside of 1.96%. Given Endurance International Group Holdings’ higher possible upside, analysts plainly believe Endurance International Group Holdings is more favorable than Verifone Systems.
Volatility and Risk
Verifone Systems has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, Endurance International Group Holdings has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.
Valuation and Earnings
This table compares Verifone Systems and Endurance International Group Holdings’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Verifone Systems||$1.86 billion||1.24||$217.75 million||($1.62)||-12.77|
|Endurance International Group Holdings||$1.17 billion||0.94||$280.83 million||($1.05)||-7.29|
Endurance International Group Holdings has higher revenue, but lower earnings than Verifone Systems. Verifone Systems is trading at a lower price-to-earnings ratio than Endurance International Group Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Verifone Systems and Endurance International Group Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Endurance International Group Holdings||-12.05%||-122.84%||-5.12%|
Insider and Institutional Ownership
86.4% of Endurance International Group Holdings shares are held by institutional investors. 1.2% of Verifone Systems shares are held by company insiders. Comparatively, 58.2% of Endurance International Group Holdings 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.
Verifone Systems beats Endurance International Group Holdings on 7 of the 13 factors compared between the two stocks.
Verifone Systems Company Profile
VeriFone Systems, Inc. offers payments and commerce solutions. The Company is engaged in designing, manufacturing, marketing and supplying a range of payment solutions and complementary services. It provides solutions and services for the retail point-of-sale (POS) that enable various forms of commerce. The Company’s segments include Verifone Systems and Verifone Services. The Verifone Systems segment delivers point of sale electronic payment devices that run the operating systems, security and encryption software, and certified payment software for both payments and commerce. The Verifone Services segment delivers device-related leasing and maintenance, payment transaction routing and reporting, and commerce based services, such as advertising on digital screens. The Company operates in various sectors, such as financial services, retail, petroleum, restaurant, hospitality, taxi, transportation and healthcare.
Endurance International Group Holdings Company Profile
Endurance International Group Holdings, Inc. (Endurance) is a provider of cloud-based platform solutions designed to help small and medium-sized businesses (SMBs) succeed online. The Company operates through two segments: Web Presence and Email Marketing. The Company’s Web presence segment consists of Web hosting, domains and the related products and services. Its e-mail marketing segment consists of the products and services offered by Constant Contact, principally e-mail marketing, including event marketing, survey tools and SinglePlatform. The Company’s products focuses on Web hosting and other Web presence solutions, such as domains, and it also offers security, site backup, domains, search engine optimization (SEO) and search engine marketing (SEM), Google Adwords, mobile solutions, social media enablement, Website analytics, e-mail marketing and productivity and e-commerce tools, among others. It conducts operations in the United States, Brazil, India, and the Netherlands.
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