Contrasting Planet Payment (PLPM) and Xoom (XOOM)

Planet Payment (NASDAQ: PLPM) and Xoom (NASDAQ:XOOM) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Insider & Institutional Ownership

53.0% of Planet Payment shares are held by institutional investors. 20.2% of Planet Payment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Planet Payment and Xoom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Planet Payment 1 3 1 0 2.00
Xoom 0 0 0 0 N/A

Planet Payment presently has a consensus target price of $4.50, suggesting a potential upside of 0.22%.

Valuation & Earnings

This table compares Planet Payment and Xoom’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Planet Payment $54.34 million 4.13 $25.07 million $0.47 9.55
Xoom N/A N/A N/A ($1.19) N/A

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

Profitability

This table compares Planet Payment and Xoom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Planet Payment 50.75% 24.59% 17.51%
Xoom -37.74% -25.16% -21.82%

Summary

Planet Payment beats Xoom on 8 of the 8 factors compared between the two stocks.

Planet Payment Company Profile

Planet Payment, Inc. is a provider of international payment and transaction processing and multi-currency processing services. The Company operates through two segments: multi-currency processing services and payment processing services. Its multi-currency processing services segment includes Pay In Your Currency, Multi-Currency Pricing and Dynamic Currency Conversion at automated teller machines, enable merchants to offer customized pricing in multiple currencies. Its payment processing services consist of end-to-end authorization, capture, clearing and settlement services to its customers along with localized language support and online access to reconciliation, reporting and analytics services. It provides its services to approximately 118,000 active merchant locations in over 20 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through its acquiring bank and processor customers.

Xoom 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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