Reviewing FleetCor Technologies (FLT) & Global Payments (GPN)
FleetCor Technologies (NYSE: FLT) and Global Payments (NYSE:GPN) are both large-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Risk & Volatility
FleetCor Technologies has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Global Payments has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
Global Payments pays an annual dividend of $0.05 per share and has a dividend yield of 0.1%. FleetCor Technologies does not pay a dividend. Global Payments pays out 3.1% of its earnings in the form of a dividend.
This is a summary of current ratings and target prices for FleetCor Technologies and Global Payments, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FleetCor Technologies currently has a consensus target price of $182.46, suggesting a potential upside of 25.90%. Global Payments has a consensus target price of $97.18, suggesting a potential downside of 0.91%. Given FleetCor Technologies’ stronger consensus rating and higher possible upside, equities analysts plainly believe FleetCor Technologies is more favorable than Global Payments.
Earnings and Valuation
This table compares FleetCor Technologies and Global Payments’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|FleetCor Technologies||$2.06 billion||6.46||$1.11 billion||$5.06||28.64|
|Global Payments||$4.19 billion||3.57||$1.15 billion||$1.63||60.17|
Global Payments has higher revenue and earnings than FleetCor Technologies. FleetCor Technologies is trading at a lower price-to-earnings ratio than Global Payments, indicating that it is currently the more affordable of the two stocks.
This table compares FleetCor Technologies and Global Payments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
97.6% of FleetCor Technologies shares are held by institutional investors. Comparatively, 97.9% of Global Payments shares are held by institutional investors. 4.6% of FleetCor Technologies shares are held by company insiders. Comparatively, 0.9% of Global Payments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
FleetCor Technologies beats Global Payments on 11 of the 17 factors compared between the two stocks.
About FleetCor Technologies
FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.
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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