Federal Agricultural Mortgage (NYSE:AGM – Get Free Report) and Euronet Worldwide (NASDAQ:EEFT – Get Free Report) are both mid-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.
Institutional & Insider Ownership
68.0% of Federal Agricultural Mortgage shares are held by institutional investors. Comparatively, 91.6% of Euronet Worldwide shares are held by institutional investors. 1.9% of Federal Agricultural Mortgage shares are held by insiders. Comparatively, 12.2% of Euronet Worldwide shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Federal Agricultural Mortgage has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Euronet Worldwide has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Federal Agricultural Mortgage | $410.30 million | 6.00 | $207.41 million | $17.38 | 13.06 |
| Euronet Worldwide | $4.24 billion | 0.64 | $309.50 million | $6.93 | 10.29 |
Euronet Worldwide has higher revenue and earnings than Federal Agricultural Mortgage. Euronet Worldwide is trading at a lower price-to-earnings ratio than Federal Agricultural Mortgage, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Federal Agricultural Mortgage and Euronet Worldwide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Federal Agricultural Mortgage | 29.98% | 19.09% | 0.65% |
| Euronet Worldwide | 6.63% | 28.60% | 5.67% |
Analyst Recommendations
This is a breakdown of recent recommendations for Federal Agricultural Mortgage and Euronet Worldwide, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Federal Agricultural Mortgage | 0 | 1 | 1 | 0 | 2.50 |
| Euronet Worldwide | 1 | 3 | 3 | 0 | 2.29 |
Federal Agricultural Mortgage presently has a consensus target price of $228.00, suggesting a potential upside of 0.46%. Euronet Worldwide has a consensus target price of $96.00, suggesting a potential upside of 34.59%. Given Euronet Worldwide’s higher possible upside, analysts plainly believe Euronet Worldwide is more favorable than Federal Agricultural Mortgage.
Summary
Euronet Worldwide beats Federal Agricultural Mortgage on 8 of the 14 factors compared between the two stocks.
About Federal Agricultural Mortgage
Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through four segments: Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy. The company’s Agricultural Finance line of business engages in purchasing and retaining eligible loans and securities; guaranteeing the payment of principal and interest on securities that represent interests in or obligations secured by pools of eligible loans; servicing eligible loans; and issuing LTSPCs for eligible loans. Its Rural Infrastructure Finance line of business is involved in the purchase of rural utilities loans and renewable energy loans and guarantees of securities backed by loans, as well as LTSPCs for pools of eligible rural utilities loans; by loans for electric or telecommunications facilities by lenders organized as cooperatives to borrowers; and other financial institutions that are secured by pools of eligible loans. Federal Agricultural Mortgage Corporation was incorporated in 1987 and is headquartered in Washington, the District of Columbia.
About Euronet Worldwide
Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. It operates through three segments: Electronic Fund Transfer Processing, epay, and Money Transfer. The Electronic Fund Transfer Processing segment provides electronic payment solutions, including automated teller machine (ATM) cash withdrawal and deposit services, ATM network participation, outsourced ATM and point-of-sale (POS) management solutions, credit and debit and prepaid card outsourcing, card issuing, and merchant acquiring services. It also offers ATM and POS currency conversion, ATM surcharge, advertising, customer relationship management, mobile top-up, bill payment, fraud management, foreign remittance and cardless payout, banknote recycling, and tax-refund services; and integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems. The epay segment distributes and processes prepaid mobile airtime and other electronic payment products; and provides payment processing services for various prepaid products, cards, and services, as well as vouchers and physical gift fulfillment, and gift card distribution and processing services. This segment operates a network of approximately 821,000 POS terminals. The Money Transfer segment offers consumer-to-consumer and account-to-account money transfer, customers bill payment, check cashing, foreign currency exchange, mobile top-up, and cash management and foreign currency risk management services, as well as payment alternatives, such as money orders and prepaid debit cards. The company was formerly known as Euronet Services, Inc. and changed its name to Euronet Worldwide, Inc. in August 2001. Euronet Worldwide, Inc. was founded in 1994 and is headquartered in Leawood, Kansas.
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