Head to Head Analysis: FleetCor Technologies (NYSE:FLT) and Euronet Worldwide (EEFT)

Euronet Worldwide (NASDAQ: EEFT) and FleetCor Technologies (NYSE:FLT) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

93.9% of Euronet Worldwide shares are held by institutional investors. Comparatively, 97.7% of FleetCor Technologies shares are held by institutional investors. 7.7% of Euronet Worldwide shares are held by company insiders. Comparatively, 4.3% of FleetCor Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Euronet Worldwide and FleetCor Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Euronet Worldwide $2.05 billion 2.52 $345.38 million $3.78 25.97
FleetCor Technologies $2.06 billion 7.32 $1.11 billion $5.06 32.44

FleetCor Technologies has higher revenue and earnings than Euronet Worldwide. Euronet Worldwide is trading at a lower price-to-earnings ratio than FleetCor Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for Euronet Worldwide and FleetCor Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Euronet Worldwide 0 0 6 0 3.00
FleetCor Technologies 0 0 12 1 3.08

Euronet Worldwide currently has a consensus price target of $109.20, suggesting a potential upside of 11.22%. FleetCor Technologies has a consensus price target of $180.09, suggesting a potential upside of 9.72%. Given Euronet Worldwide’s higher possible upside, equities research analysts plainly believe Euronet Worldwide is more favorable than FleetCor Technologies.

Profitability

This table compares Euronet Worldwide and FleetCor Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Euronet Worldwide 9.63% 23.76% 8.30%
FleetCor Technologies 23.28% 20.87% 6.85%

Volatility and Risk

Euronet Worldwide has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, FleetCor Technologies has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Summary

FleetCor Technologies beats Euronet Worldwide on 10 of the 15 factors compared between the two stocks.

About Euronet Worldwide

Euronet Worldwide, Inc. is an electronic payments provider. The Company offers payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers. Its product offerings include automated teller machine (ATM), point-of-sale (POS), card outsourcing, card issuing and merchant acquiring services, electronic distribution of prepaid mobile airtime and other electronic payment products. It operates in three segments: EFT Processing Segment provides electronic payment solutions consisting of ATM cash withdrawal and deposit services, outsourced ATM and POS management solutions, and credit and debit card outsourcing; epay Segment provides electronic distribution and processing of prepaid mobile airtime and other electronic payment products and collection services, and Money Transfer Segment provides global consumer-to-consumer money transfer services and global account-to-account money transfer services.

About FleetCor Technologies

FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.

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