Head to Head Analysis: Worldpay (WP) versus Its Competitors

Worldpay (NYSE: WP) is one of 95 publicly-traded companies in the “Business Support Services” industry, but how does it compare to its rivals? We will compare Worldpay to similar businesses based on the strength of its dividends, profitability, earnings, institutional ownership, risk, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and target prices for Worldpay and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Worldpay 0 4 27 1 2.91
Worldpay Competitors 702 1958 2616 68 2.38

Worldpay presently has a consensus price target of $82.93, indicating a potential upside of 11.63%. As a group, “Business Support Services” companies have a potential upside of 5.25%. Given Worldpay’s stronger consensus rating and higher possible upside, analysts plainly believe Worldpay is more favorable than its rivals.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Worldpay $3.58 billion $213.20 million 51.59
Worldpay Competitors $1.28 billion $103.17 million 1,294.27

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.

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 -18.83% -18.98% 1.62%

Volatility and Risk

Worldpay has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Worldpay’s rivals have a beta of 1.08, suggesting that their average share price is 8% more volatile than the S&P 500.

Institutional & Insider Ownership

62.6% of shares of all “Business Support Services” companies are held by institutional investors. 1.3% of Worldpay shares are held by company insiders. Comparatively, 12.7% of shares of all “Business Support Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

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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