Head-To-Head Comparison: Planet Payment (PLPM) versus Global Payments (GPN)
Global Payments (NYSE: GPN) and Planet Payment (NASDAQ:PLPM) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
This table compares Global Payments and Planet Payment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for Global Payments and Planet Payment, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Global Payments currently has a consensus price target of $100.16, indicating a potential downside of 3.33%. Planet Payment has a consensus price target of $4.50, indicating a potential upside of 0.67%. Given Planet Payment’s higher possible upside, analysts clearly believe Planet Payment is more favorable than Global Payments.
Volatility & Risk
Global Payments has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Planet Payment has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.
Insider & Institutional Ownership
98.0% of Global Payments shares are held by institutional investors. Comparatively, 47.3% of Planet Payment shares are held by institutional investors. 0.9% of Global Payments shares are held by company insiders. Comparatively, 20.2% of Planet Payment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Global Payments pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Planet Payment does not pay a dividend. Global Payments pays out 2.5% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Global Payments and Planet Payment’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Global Payments||$2.90 billion||5.45||$271.66 million||$1.63||63.56|
|Planet Payment||$54.34 million||4.11||$25.07 million||$0.47||9.51|
Global Payments has higher revenue and earnings than Planet Payment. Planet Payment is trading at a lower price-to-earnings ratio than Global Payments, indicating that it is currently the more affordable of the two stocks.
Global Payments beats Planet Payment on 10 of the 16 factors compared between the two stocks.
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.
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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