Planet Payment (NASDAQ: PLPM) and FleetCor Technologies (NYSE:FLT) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional & Insider Ownership

50.6% of Planet Payment shares are owned by institutional investors. Comparatively, 97.6% of FleetCor Technologies shares are owned by institutional investors. 20.2% of Planet Payment shares are owned by insiders. Comparatively, 4.3% of FleetCor Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Planet Payment and FleetCor Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Planet Payment 0 0 1 0 3.00
FleetCor Technologies 0 0 12 1 3.08

FleetCor Technologies has a consensus target price of $181.45, suggesting a potential upside of 15.03%. Given FleetCor Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe FleetCor Technologies is more favorable than Planet Payment.

Volatility & Risk

Planet Payment has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, FleetCor Technologies has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Profitability

This table compares Planet Payment and FleetCor Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Planet Payment 48.14% 25.86% 16.37%
FleetCor Technologies 23.28% 20.87% 6.85%

Earnings and Valuation

This table compares Planet Payment and FleetCor Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Planet Payment $52.79 million 3.96 $12.12 million $0.47 9.04
FleetCor Technologies $2.06 billion 7.04 $1.11 billion $5.06 31.17

FleetCor Technologies has higher revenue and earnings than Planet Payment. Planet Payment is trading at a lower price-to-earnings ratio than FleetCor Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

FleetCor Technologies beats Planet Payment on 10 of the 15 factors compared between the two stocks.

About Planet Payment

Planet Payment, Inc. is a provider of international payment and transaction processing and multi-currency processing services. The Company operates through two segments: multi-currency processing services and payment processing services. Its multi-currency processing services segment includes Pay In Your Currency, Multi-Currency Pricing and Dynamic Currency Conversion at automated teller machines, enable merchants to offer customized pricing in multiple currencies. Its payment processing services consist of end-to-end authorization, capture, clearing and settlement services to its customers along with localized language support and online access to reconciliation, reporting and analytics services. It provides its services to approximately 118,000 active merchant locations in over 20 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through its acquiring bank and processor customers.

About FleetCor Technologies

FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.

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