Planet Payment (NASDAQ: PLPM) and Heartland Payment Systems (NYSE:HPY) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Risk & Volatility
Planet Payment has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Heartland Payment Systems has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.
This table compares Planet Payment and Heartland Payment Systems’ top-line revenue, earnings per share 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||$0.49||9.16|
|Heartland Payment Systems||N/A||N/A||N/A||$2.27||45.29|
Planet Payment has higher revenue and earnings than Heartland Payment Systems. Planet Payment is trading at a lower price-to-earnings ratio than Heartland Payment Systems, indicating that it is currently the more affordable of the two stocks.
This table compares Planet Payment and Heartland Payment Systems’ 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 pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Planet Payment does not pay a dividend. Heartland Payment Systems pays out 17.6% of its earnings in the form of a dividend. Planet Payment has raised its dividend for 7 consecutive years.
Institutional and Insider 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for Planet Payment and Heartland Payment Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Heartland Payment Systems||0||0||0||0||N/A|
Planet Payment currently has a consensus price target of $4.50, indicating a potential upside of 0.22%. Given Planet Payment’s higher possible upside, analysts clearly believe Planet Payment is more favorable than Heartland Payment Systems.
Planet Payment beats Heartland Payment Systems on 8 of the 13 factors compared between the two stocks.
About Planet Payment
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.
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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