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

Risk & Volatility

Heartland Payment Systems has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Heartland Payment Systems’ competitors have a beta of 1.27, indicating that their average stock price is 27% more volatile than the S&P 500.

Institutional & 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, hedge funds and large money managers believe a stock is poised for long-term growth.

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 1.4% and pay out 47.4% of their earnings in the form of a dividend. Heartland Payment Systems has raised its dividend for 6 consecutive years.

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%

Earnings and Valuation

This table compares Heartland Payment Systems and its competitors top-line revenue, earnings per share 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 961.27

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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Heartland Payment Systems and its competitors, as reported 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 1057 15 2.50

As a group, “Transaction & Payment Services” companies have a potential upside of 6.70%. Given Heartland Payment Systems’ competitors higher probable upside, analysts plainly believe Heartland Payment Systems has less favorable growth aspects than its competitors.

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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