Xoom (NASDAQ: XOOM) and Global Payments (NYSE:GPN) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Xoom and Global Payments, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xoom 0 0 0 0 N/A
Global Payments 2 3 23 0 2.75

Global Payments has a consensus price target of $104.83, suggesting a potential upside of 4.05%.

Institutional and Insider Ownership

99.0% of Global Payments shares are owned by institutional investors. 0.9% of Global Payments shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Xoom and Global Payments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xoom -37.74% -25.16% -21.82%
Global Payments 7.14% 18.50% 5.40%

Earnings and Valuation

This table compares Xoom and Global Payments’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xoom N/A N/A N/A ($1.19) N/A
Global Payments $2.90 billion 5.53 $271.66 million $1.79 56.29

Global Payments has higher revenue and earnings than Xoom. Xoom is trading at a lower price-to-earnings ratio than Global Payments, indicating that it is currently the more affordable of the two stocks.

Dividends

Global Payments pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Xoom does not pay a dividend. Global Payments pays out 2.2% of its earnings in the form of a dividend.

Summary

Global Payments beats Xoom on 9 of the 10 factors compared between the two stocks.

About Xoom

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.

About Global Payments

Global Payments Inc. is a provider of payment technology services. The Company provides payment and digital commerce solutions. The Company operates through three segments: North America, Europe and Asia-Pacific. The Company’s segments primarily provide payment solutions for credit cards, debit cards, electronic payments and check-related services. The Company’s segments target customers in various industries, including financial services, gaming, government, healthcare, professional services, restaurants, retail, universities, not-for-profit organizations and utilities. It provides services across a range of channels to merchants and partners in over 30 countries throughout North America, Europe, the Asia-Pacific region and Brazil. The Company performs a series of services, including authorization, electronic draft capture, file transfers to facilitate funds settlement and certain exception-based, back office support services, such as chargeback and retrieval resolution.

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