Contrasting Cardtronics PLC (CATM) and Alliance Data Systems Corporation (ADS)

Cardtronics PLC (NASDAQ: CATM) and Alliance Data Systems Corporation (NYSE:ADS) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Earnings & Valuation

This table compares Cardtronics PLC and Alliance Data Systems Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cardtronics PLC $1.38 billion 0.76 $304.90 million $1.45 15.87
Alliance Data Systems Corporation $7.41 billion 1.74 $1.47 billion $9.43 24.66

Alliance Data Systems Corporation has higher revenue and earnings than Cardtronics PLC. Cardtronics PLC is trading at a lower price-to-earnings ratio than Alliance Data Systems Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Alliance Data Systems Corporation pays an annual dividend of $2.08 per share and has a dividend yield of 0.9%. Cardtronics PLC does not pay a dividend. Alliance Data Systems Corporation pays out 22.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

96.2% of Alliance Data Systems Corporation shares are held by institutional investors. 1.2% of Cardtronics PLC shares are held by insiders. Comparatively, 2.6% of Alliance Data Systems Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Cardtronics PLC has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Alliance Data Systems Corporation has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Cardtronics PLC and Alliance Data Systems Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardtronics PLC 0 4 1 0 2.20
Alliance Data Systems Corporation 3 7 9 0 2.32

Cardtronics PLC presently has a consensus price target of $41.00, indicating a potential upside of 78.18%. Alliance Data Systems Corporation has a consensus price target of $257.00, indicating a potential upside of 10.49%. Given Cardtronics PLC’s higher possible upside, analysts plainly believe Cardtronics PLC is more favorable than Alliance Data Systems Corporation.

Profitability

This table compares Cardtronics PLC and Alliance Data Systems Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardtronics PLC 4.83% 28.23% 7.72%
Alliance Data Systems Corporation 7.09% 62.95% 3.66%

Summary

Alliance Data Systems Corporation beats Cardtronics PLC on 13 of the 16 factors compared between the two stocks.

About Cardtronics PLC

Cardtronics plc, formerly Cardtronics, Inc., provides automated consumer financial services through its network of automated teller machines (ATMS) and multi-function financial services kiosks. The Company’s operations consists of its North America, Europe, and Corporate & Other segments. Its ATM operations in the United States, Canada, Mexico and Puerto Rico are included in its North America segment. Its ATM operations in the United Kingdom, Ireland, Germany, Poland, Spain and i-design are included in its Europe segment. Its transaction processing operations, which service its North American and European operations, along with external customers, and the Company’s corporate general and administrative functions comprise the Corporate & Other segment. As of December 31, 2016, it provided services to approximately 203,000 ATMs throughout the United States (including the United States territory of Puerto Rico), the United Kingdom, Ireland, Germany, Poland, Spain, Canada and Mexico.

About Alliance Data Systems Corporation

Alliance Data Systems Corporation is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. The Company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs. The Company operates through three segments: LoyaltyOne, which provides coalition and short-term loyalty programs through the Company’s Canadian AIR MILES Reward Program and BrandLoyalty Group B.V. (BrandLoyalty); Epsilon, which provides end-to-end, integrated direct marketing solutions, and Card Services, which provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services for the Company’s private label and co-brand retail credit card programs.

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