Qiwi Plc (NASDAQ: QIWI) and Xoom Corp (NASDAQ:XOOM) are both business services 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 and Insider Ownership

14.6% of Qiwi Plc shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Qiwi Plc and Xoom Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Qiwi Plc 14.88% 22.31% 12.32%
Xoom Corp -37.74% -25.16% -21.82%

Dividends

Qiwi Plc pays an annual dividend of $0.75 per share and has a dividend yield of 4.3%. Xoom Corp does not pay a dividend. Qiwi Plc pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Qiwi Plc and Xoom Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Qiwi Plc $603.08 million 1.76 $169.32 million $0.75 23.33
Xoom Corp N/A N/A N/A N/A N/A

Qiwi Plc has higher revenue and earnings than Xoom Corp.

Analyst Ratings

This is a summary of current recommendations for Qiwi Plc and Xoom Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qiwi Plc 0 2 2 0 2.50
Xoom Corp 0 0 0 0 N/A

Qiwi Plc currently has a consensus target price of $22.67, suggesting a potential upside of 29.52%. Given Qiwi Plc’s higher possible upside, research analysts clearly believe Qiwi Plc is more favorable than Xoom Corp.

Summary

Qiwi Plc beats Xoom Corp on 8 of the 9 factors compared between the two stocks.

Qiwi Plc Company Profile

QIWI plc is a provider of payment services in Russia and the Commonwealth of Independent States (CIS). The Company’s network enables payment services across physical, online and mobile channels. The Company operates in target markets and customer segments. As of December 31, 2016, the Company had deployed over 17.2 million virtual wallets, over 162,000 kiosks and terminals, and enabled merchants to accept over Russian rubles 70 billion cash and electronic payments monthly. The Company’s consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or virtual environments interchangeably. The Company provides integrated network of physical distribution points and virtual wallets, as well as payment channels and methods that enable consumers to deposit cash, convert it into a digital form and transfer the funds to a virtual wallet or pay for any merchant in its network.

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.

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