Heartland Payment Systems (HPY) and Planet Payment (PLPM) Head-To-Head Analysis

Heartland Payment Systems (NYSE: HPY) and Planet Payment (NASDAQ:PLPM) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Insider & Institutional Ownership

53.0% of Planet Payment shares are held by institutional investors. 20.2% of Planet Payment shares are held 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.

Dividends

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. Heartland Payment Systems has increased its dividend for 7 consecutive years.

Volatility and Risk

Heartland Payment Systems has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Planet Payment has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Profitability

This table compares Heartland Payment Systems and Planet Payment’s 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%
Planet Payment 26.77% 31.05% 27.46%

Analyst Recommendations

This is a breakdown of recent ratings for Heartland Payment Systems and Planet Payment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heartland Payment Systems 0 0 0 0 N/A
Planet Payment 1 3 0 0 1.75

Planet Payment has a consensus target price 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.

Earnings & Valuation

This table compares Heartland Payment Systems and Planet Payment’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heartland Payment Systems N/A N/A N/A $2.27 45.41
Planet Payment $54.34 million 4.13 $25.07 million $0.49 9.16

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.

Summary

Planet Payment beats Heartland Payment Systems on 8 of the 13 factors compared between the two stocks.

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.

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.

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