Heartland Payment Systems (NYSE: HPY) is one of 28 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it compare to its competitors? We will compare Heartland Payment Systems to related companies based on the strength of its earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Profitability

This table compares Heartland Payment Systems and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heartland Payment Systems 3.25% 27.90% 6.09%
Heartland Payment Systems Competitors 8.77% 12.40% 3.99%

Dividends

Heartland Payment Systems pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Heartland Payment Systems pays out 17.6% of its earnings in the form of a dividend. As a group, “Transaction & Payment Services” companies pay a dividend yield of 0.9% and pay out 34.6% of their earnings in the form of a dividend. Heartland Payment Systems has increased its dividend for 6 consecutive years.

Institutional and Insider Ownership

58.8% of shares of all “Transaction & Payment Services” companies are owned by institutional investors. 17.9% of shares of all “Transaction & Payment Services” companies are owned by 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.

Analyst Ratings

This is a summary of current ratings and price targets for Heartland Payment Systems and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heartland Payment Systems 0 0 0 0 N/A
Heartland Payment Systems Competitors 125 731 1056 15 2.50

As a group, “Transaction & Payment Services” companies have a potential upside of 6.78%. Given Heartland Payment Systems’ competitors higher possible upside, analysts plainly believe Heartland Payment Systems has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Heartland Payment Systems and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Heartland Payment Systems N/A N/A 45.41
Heartland Payment Systems Competitors $2.36 billion $197.44 million 1,005.14

Heartland Payment Systems’ competitors have higher revenue and earnings than Heartland Payment Systems. Heartland Payment Systems is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Heartland Payment Systems has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Heartland Payment Systems’ competitors have a beta of 1.25, meaning that their average share price is 25% more volatile than the S&P 500.

Summary

Heartland Payment Systems competitors beat Heartland Payment Systems on 7 of the 10 factors compared.

About Heartland Payment Systems

Heartland Payment Systems, Inc. is a United States-based company that provides payment processing services to merchants. The Company’s electronic payment processing services facilitate the exchange of information and funds between merchants and cardholders’ financial institutions. Its segments include Payment Processing, which offers card payment processing and related services to its small and medium-sized enterprise merchants and Network Services merchants; Campus Solutions, which offers payment processing, integrated commerce solutions, loan services and open- and closed-loop payment solutions to institutions of higher education; Heartland School Solutions, which offers school nutrition and point of sale solutions and associated payment solutions to K-12 schools; Heartland Payroll Solutions, which provides payroll processing and related tax filing services, and Other, including integrated payments solutions for small ticket merchants, and loyalty and gift card marketing solutions.

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