Worldpay (WP) versus The Competition Critical Review

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

Insider and Institutional Ownership

63.5% of shares of all “Business Support Services” companies are owned by institutional investors. 1.3% of Worldpay shares are owned by company insiders. Comparatively, 12.4% of shares of all “Business Support Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Worldpay 6.07% 41.19% 7.92%
Worldpay Competitors -17.95% 9.04% 2.03%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Worldpay and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Worldpay 0 5 27 1 2.88
Worldpay Competitors 702 1988 2741 66 2.39

Worldpay presently has a consensus target price of $82.38, suggesting a potential upside of 3.31%. As a group, “Business Support Services” companies have a potential downside of 2.91%. Given Worldpay’s stronger consensus rating and higher probable upside, equities analysts plainly believe Worldpay is more favorable than its rivals.

Risk and Volatility

Worldpay has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Worldpay’s rivals have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.

Valuation and Earnings

This table compares Worldpay and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Worldpay $3.58 billion $213.20 million 55.38
Worldpay Competitors $1.24 billion $76.68 million 1,510.72

Worldpay has higher revenue and earnings than its rivals. Worldpay is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Worldpay beats its rivals 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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