QIWI PLC (NASDAQ: QIWI) and Global Payments (NYSE:GPN) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Profitability

This table compares QIWI PLC and Global Payments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QIWI PLC 14.88% 22.31% 12.32%
Global Payments 6.65% 18.32% 5.26%

Dividends

QIWI PLC pays an annual dividend of $0.75 per share and has a dividend yield of 4.6%. Global Payments pays an annual dividend of $0.05 per share and has a dividend yield of 0.1%. QIWI PLC pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Payments pays out 3.1% of its earnings in the form of a dividend.

Risk & Volatility

QIWI PLC has a beta of 3.34, suggesting that its stock price is 234% more volatile than the S&P 500. Comparatively, Global Payments has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for QIWI PLC and Global Payments, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QIWI PLC 0 2 2 0 2.50
Global Payments 1 2 18 0 2.81

QIWI PLC presently has a consensus price target of $22.67, indicating a potential upside of 39.66%. Global Payments has a consensus price target of $94.26, indicating a potential upside of 0.29%. Given QIWI PLC’s higher possible upside, equities analysts clearly believe QIWI PLC is more favorable than Global Payments.

Earnings and Valuation

This table compares QIWI PLC and Global Payments’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
QIWI PLC N/A N/A N/A $0.75 21.64
Global Payments $4.19 billion 3.42 $1.15 billion $1.63 57.66

Global Payments has higher revenue and earnings than QIWI PLC. QIWI PLC is trading at a lower price-to-earnings ratio than Global Payments, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

14.6% of QIWI PLC shares are held by institutional investors. Comparatively, 97.9% of Global Payments shares are held by institutional investors. 0.9% of Global Payments shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Global Payments beats QIWI PLC on 8 of the 14 factors compared between the two stocks.

About QIWI PLC

QIWI plc is a provider of payment services in Russia and the Commonwealth of Independent States (CIS). The Company’s network enables payment services across physical, online and mobile channels. The Company operates in target markets and customer segments. As of December 31, 2016, the Company had deployed over 17.2 million virtual wallets, over 162,000 kiosks and terminals, and enabled merchants to accept over Russian rubles 70 billion cash and electronic payments monthly. The Company’s consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or virtual environments interchangeably. The Company provides integrated network of physical distribution points and virtual wallets, as well as payment channels and methods that enable consumers to deposit cash, convert it into a digital form and transfer the funds to a virtual wallet or pay for any merchant in its network.

About Global Payments

Global Payments Inc. is a provider of payment technology services. The Company provides payment and digital commerce solutions. The Company operates through three segments: North America, Europe and Asia-Pacific. The Company’s segments primarily provide payment solutions for credit cards, debit cards, electronic payments and check-related services. The Company’s segments target customers in various industries, including financial services, gaming, government, healthcare, professional services, restaurants, retail, universities, not-for-profit organizations and utilities. It provides services across a range of channels to merchants and partners in over 30 countries throughout North America, Europe, the Asia-Pacific region and Brazil. The Company performs a series of services, including authorization, electronic draft capture, file transfers to facilitate funds settlement and certain exception-based, back office support services, such as chargeback and retrieval resolution.

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