Head to Head Analysis: Total System Services (TSS) and PFSweb (PFSW)
Total System Services (NYSE: TSS) and PFSweb (NASDAQ:PFSW) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Insider & Institutional Ownership
76.1% of Total System Services shares are held by institutional investors. Comparatively, 58.8% of PFSweb shares are held by institutional investors. 2.6% of Total System Services shares are held by company insiders. Comparatively, 5.1% of PFSweb shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Total System Services pays an annual dividend of $0.52 per share and has a dividend yield of 0.7%. PFSweb does not pay a dividend. Total System Services pays out 23.1% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for Total System Services and PFSweb, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Total System Services||1||9||16||0||2.58|
Total System Services currently has a consensus price target of $69.17, indicating a potential downside of 6.56%. PFSweb has a consensus price target of $11.13, indicating a potential upside of 48.14%. Given PFSweb’s stronger consensus rating and higher probable upside, analysts plainly believe PFSweb is more favorable than Total System Services.
This table compares Total System Services and PFSweb’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Total System Services||8.73%||26.25%||9.23%|
Risk & Volatility
Total System Services has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, PFSweb has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.
Earnings & Valuation
This table compares Total System Services and PFSweb’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Total System Services||$4.17 billion||3.26||$319.63 million||$2.25||32.90|
|PFSweb||$334.64 million||0.43||-$7.53 million||($0.60)||-12.52|
Total System Services has higher revenue and earnings than PFSweb. PFSweb is trading at a lower price-to-earnings ratio than Total System Services, indicating that it is currently the more affordable of the two stocks.
Total System Services beats PFSweb on 11 of the 16 factors compared between the two stocks.
About Total System Services
Total System Services, Inc. (TSYS) is a payment solutions provider that provides payment processing services, merchant services and related payment services to financial and non-financial institutions. The Company’s segments include North America Services, Merchant Services, NetSpend and International Services. In addition, it provides general purpose reloadable (GPR) prepaid and payroll cards, and alternative financial service solutions to the underbanked and other consumers. The Company’s Merchant Services segment provides third party processing services to merchant acquirers and Independent Sales Organizations (ISOs) and financial institutions. The Company’s NetSpend segment is engaged in the provision and sale of prepaid access devices, such as its GPR prepaid debit cards. The Company’s services and solutions include Issuing Services, Acquiring Services, Prepaid Solutions and Merchant Solutions.
PFSWEB, Inc. is a global provider of omni-channel commerce solutions, including a range of technology, infrastructure and professional services. The Company’s service offerings include Website design, creation and integration, digital agency and marketing, e-commerce technologies, order management, customer care, logistics and fulfillment, financial management and professional consulting. It operates through two segments: PFSweb, and Business and Retail Connect. PFSweb is a global provider of various infrastructure, technology and digital agency solutions and operates as a service fee business. In the Business and Retail Connect segment, subsidiaries of the Company purchase inventory from clients and resell the inventory to client customers. Its solutions support direct-to-consumer (DTC), business-to-business (B2B) and retail sales channels. It markets its solutions as PFSweb’s End2End eCommerce solution.
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