Comparing Worldpay (WP) & The Competition

Worldpay (NYSE: WP) is one of 99 publicly-traded companies in the “Business Support Services” industry, but how does it compare to its competitors? We will compare Worldpay to similar businesses based on the strength of its earnings, analyst recommendations, institutional ownership, valuation, risk, dividends and profitability.

Risk and Volatility

Worldpay has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Worldpay’s competitors have a beta of 1.13, indicating that their average stock price is 13% more volatile than the S&P 500.

Institutional and Insider Ownership

62.6% of shares of all “Business Support Services” companies are owned by institutional investors. 1.3% of Worldpay shares are owned by company insiders. Comparatively, 12.6% of shares of all “Business Support Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Worldpay and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Worldpay 0 5 26 1 2.88
Worldpay Competitors 701 1987 2738 66 2.39

Worldpay presently has a consensus price target of $81.64, suggesting a potential upside of 3.70%. As a group, “Business Support Services” companies have a potential downside of 3.66%. Given Worldpay’s stronger consensus rating and higher possible upside, equities analysts plainly believe Worldpay is more favorable than its competitors.

Profitability

This table compares Worldpay and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Worldpay 10.34% 36.43% 5.52%
Worldpay Competitors -17.90% 9.18% 2.05%

Earnings & Valuation

This table compares Worldpay and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Worldpay $3.58 billion $213.20 million 54.67
Worldpay Competitors $1.24 billion $76.68 million 1,481.71

Worldpay has higher revenue and earnings than its competitors. Worldpay 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.

Summary

Worldpay beats its competitors on 9 of the 13 factors compared.

Worldpay Company Profile

Worldpay, Inc., formerly 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.

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