Planet Payment (NASDAQ: PLPM) is one of 31 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it weigh in compared to its peers? We will compare Planet Payment to related businesses based on the strength of its risk, valuation, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Profitability

This table compares Planet Payment and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Planet Payment 48.14% 25.86% 16.37%
Planet Payment Competitors 10.74% 15.92% 5.19%

Valuation & Earnings

This table compares Planet Payment and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Planet Payment $52.79 million $12.12 million 8.72
Planet Payment Competitors $1.64 billion $481.00 million 28.52

Planet Payment’s peers have higher revenue and earnings than Planet Payment. Planet Payment is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for Planet Payment and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Planet Payment 0 0 1 0 3.00
Planet Payment Competitors 155 802 1092 22 2.47

As a group, “Transaction & Payment Services” companies have a potential upside of 8.45%. Given Planet Payment’s peers higher possible upside, analysts plainly believe Planet Payment has less favorable growth aspects than its peers.

Risk & Volatility

Planet Payment has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Planet Payment’s peers have a beta of 1.30, meaning that their average stock price is 30% more volatile than the S&P 500.

Insider and Institutional Ownership

50.6% of Planet Payment shares are held by institutional investors. Comparatively, 56.7% of shares of all “Transaction & Payment Services” companies are held by institutional investors. 20.2% of Planet Payment shares are held by company insiders. Comparatively, 18.1% of shares of all “Transaction & Payment Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Planet Payment peers beat Planet Payment on 7 of the 13 factors compared.

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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