Analyzing Euronet Worldwide (EEFT) & First Data Corporation (FDC)
First Data Corporation (NYSE: FDC) and Euronet Worldwide (NASDAQ:EEFT) are both mid-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Valuation & Earnings
This table compares First Data Corporation and Euronet Worldwide’s 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||2.12||$2.79 billion||$0.59||30.81|
|Euronet Worldwide||$2.05 billion||2.46||$345.38 million||$3.09||31.06|
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.
Volatility & Risk
First Data Corporation has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, Euronet Worldwide has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
This table compares First Data Corporation and Euronet Worldwide’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%|
Insider & Institutional Ownership
39.1% of First Data Corporation shares are held by institutional investors. Comparatively, 93.9% of Euronet Worldwide shares are held by institutional investors. 6.3% of First Data Corporation shares are held by company insiders. Comparatively, 7.7% of Euronet Worldwide shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current ratings for First Data Corporation and Euronet Worldwide, as provided 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 currently has a consensus price target of $18.88, suggesting a potential upside of 3.85%. Euronet Worldwide has a consensus price target of $99.75, suggesting a potential upside of 3.94%. Given Euronet Worldwide’s stronger consensus rating and higher probable upside, analysts plainly believe Euronet Worldwide is more favorable than First Data Corporation.
Euronet Worldwide beats First Data Corporation on 9 of the 14 factors compared between the two stocks.
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.
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.
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