Financial Survey: Euronet Worldwide (NASDAQ:EEFT) and Waton Financial (NASDAQ:WTF)

Euronet Worldwide (NASDAQ:EEFT) and Waton Financial (NASDAQ:WTF) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Volatility & Risk

Euronet Worldwide has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Waton Financial has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Profitability

This table compares Euronet Worldwide and Waton Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Euronet Worldwide	7.15%	28.37%	5.74%
Waton Financial	N/A	N/A	N/A

Insider & Institutional Ownership

91.6% of Euronet Worldwide shares are held by institutional investors. 12.2% of Euronet Worldwide shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Euronet Worldwide and Waton Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Euronet Worldwide	2	2	3	0	2.14
Waton Financial	1	0	0	0	1.00

Euronet Worldwide currently has a consensus price target of $95.00, indicating a potential upside of 32.57%. Given Euronet Worldwide’s stronger consensus rating and higher probable upside, analysts clearly believe Euronet Worldwide is more favorable than Waton Financial.

Earnings and Valuation

This table compares Euronet Worldwide and Waton Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Euronet Worldwide	$4.24 billion	0.64	$309.50 million	$6.93	10.34
Waton Financial	$7.45 million	21.59	-$11.97 million	N/A	N/A

Euronet Worldwide has higher revenue and earnings than Waton Financial.

Summary

Euronet Worldwide beats Waton Financial on 10 of the 12 factors compared between the two stocks.

About Euronet Worldwide

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. It operates through three segments: Electronic Fund Transfer Processing, epay, and Money Transfer. The Electronic Fund Transfer Processing segment provides electronic payment solutions, including automated teller machine (ATM) cash withdrawal and deposit services, ATM network participation, outsourced ATM and point-of-sale (POS) management solutions, credit and debit and prepaid card outsourcing, card issuing, and merchant acquiring services. It also offers ATM and POS currency conversion, ATM surcharge, advertising, customer relationship management, mobile top-up, bill payment, fraud management, foreign remittance and cardless payout, banknote recycling, and tax-refund services; and integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems. The epay segment distributes and processes prepaid mobile airtime and other electronic payment products; and provides payment processing services for various prepaid products, cards, and services, as well as vouchers and physical gift fulfillment, and gift card distribution and processing services. This segment operates a network of approximately 821,000 POS terminals. The Money Transfer segment offers consumer-to-consumer and account-to-account money transfer, customers bill payment, check cashing, foreign currency exchange, mobile top-up, and cash management and foreign currency risk management services, as well as payment alternatives, such as money orders and prepaid debit cards. The company was formerly known as Euronet Services, Inc. and changed its name to Euronet Worldwide, Inc. in August 2001. Euronet Worldwide, Inc. was founded in 1994 and is headquartered in Leawood, Kansas.

About Waton Financial

Waton Financial Ltd. is a holding company, which engages in the provision of securities brokerage and financial technology services. It is also involved in software licensing and related support services including the licensing of trading platform app, upgrades and enhancements, maintenance, and other related services to financial institutions. The company was founded on June 25, 2010 and is headquartered in Hong Kong.