Higher One Holdings (NYSE: ONE) and Vantiv (NYSE:VNTV) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Higher One Holdings and Vantiv, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Higher One Holdings 0 0 0 0 N/A
Vantiv 0 10 17 0 2.63

Vantiv has a consensus price target of $75.54, suggesting a potential upside of 7.72%. Given Vantiv’s higher possible upside, analysts plainly believe Vantiv is more favorable than Higher One Holdings.

Earnings & Valuation

This table compares Higher One Holdings and Vantiv’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Higher One Holdings N/A N/A N/A $0.16 32.19
Vantiv $3.80 billion 2.98 $880.01 million $1.29 54.36

Vantiv has higher revenue and earnings than Higher One Holdings. Higher One Holdings is trading at a lower price-to-earnings ratio than Vantiv, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

80.0% of Vantiv shares are held by institutional investors. 1.3% of Vantiv shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Higher One Holdings and Vantiv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Higher One Holdings -26.77% -16.36% -10.01%
Vantiv 5.58% 33.54% 8.00%

Volatility & Risk

Higher One Holdings has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Vantiv has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Summary

Vantiv beats Higher One Holdings on 9 of the 10 factors compared between the two stocks.

About Higher One Holdings

Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.

About Vantiv

Vantiv, Inc. is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services that utilize the Company’s Jeanie personal identification number (PIN) debit payment network.

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