Head to Head Survey: Euronet Worldwide (EEFT) & Its Competitors

Euronet Worldwide (NASDAQ:EEFT) is one of 341 publicly-traded companies in the “Financial Services” industry, but how does it compare to its peers? We will compare Euronet Worldwide to similar businesses based on the strength of its risk, institutional ownership, profitability, dividends, earnings, analyst recommendations and valuation.

Insider and Institutional Ownership

91.6% of Euronet Worldwide shares are owned by institutional investors. Comparatively, 43.2% of shares of all “Financial Services” companies are owned by institutional investors. 12.2% of Euronet Worldwide shares are owned by insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Euronet Worldwide and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Euronet Worldwide	$4.24 billion	$309.50 million	11.43
Euronet Worldwide Competitors	$6.69 billion	$1.09 billion	9.18

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

Volatility & Risk

Euronet Worldwide has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Euronet Worldwide’s peers have a beta of 2.49, indicating that their average stock price is 149% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Euronet Worldwide and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Euronet Worldwide	1	4	3	0	2.25
Euronet Worldwide Competitors	1974	6887	11640	443	2.50

Euronet Worldwide currently has a consensus price target of $73.40, suggesting a potential upside of 4.44%. As a group, “Financial Services” companies have a potential downside of 6.90%. Given Euronet Worldwide’s higher probable upside, analysts clearly believe Euronet Worldwide is more favorable than its peers.

Profitability

This table compares Euronet Worldwide and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Euronet Worldwide	6.41%	27.44%	5.51%
Euronet Worldwide Competitors	-409.42%	-15.09%	-6.08%

Summary

Euronet Worldwide peers beat Euronet Worldwide on 7 of the 13 factors compared.

Euronet Worldwide Company Profile

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.