Global Payments (NYSE: GPN) and Xoom (NASDAQ:XOOM) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Global Payments pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Xoom does not pay a dividend. Global Payments pays out 2.3% of its earnings in the form of a dividend.
This table compares Global Payments and Xoom’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
This is a breakdown of recent recommendations for Global Payments and Xoom, as provided by MarketBeat.
||Strong Buy Ratings
Global Payments currently has a consensus price target of $104.83, indicating a potential upside of 8.49%.
Earnings and Valuation
This table compares Global Payments and Xoom’s revenue, earnings per share and valuation.
||Earnings Per Share
Global Payments has higher revenue and earnings than Xoom. Xoom is trading at a lower price-to-earnings ratio than Global Payments, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
99.0% of Global Payments shares are owned by institutional investors. 0.9% of Global Payments shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Global Payments beats Xoom on 9 of the 10 factors compared between the two stocks.
About Global Payments
Global Payments Inc. is a provider of payment technology services. The Company provides payment and digital commerce solutions. The Company operates through three segments: North America, Europe and Asia-Pacific. The Company’s segments primarily provide payment solutions for credit cards, debit cards, electronic payments and check-related services. The Company’s segments target customers in various industries, including financial services, gaming, government, healthcare, professional services, restaurants, retail, universities, not-for-profit organizations and utilities. It provides services across a range of channels to merchants and partners in over 30 countries throughout North America, Europe, the Asia-Pacific region and Brazil. The Company performs a series of services, including authorization, electronic draft capture, file transfers to facilitate funds settlement and certain exception-based, back office support services, such as chargeback and retrieval resolution.
Xoom Corporation (Xoom) is engaged in the digital consumer-to-consumer international money transfer business. The Company offers money transfer services from the United States to around 32 countries and its cross-border bill payment services from the United States to approximately five countries. Xoom’s solutions offer its customers a way to send money to, and pay bills for family and friends from any Internet-enabled location. The Company’s operating platform provides various solutions for transferring funds internationally, such as origination, funding, disbursement and transaction processing. The Company’s technology platform includes a customer interface which enables customers to send transactions from its Website, mobile Website or mobile application, using a computer, a tablet or a mobile phone; a risk management system; a transaction processing platform, and a disbursement integration platform. The Company provides its services under the XOOM brand.
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