Head to Head Comparison: Worldpay (WP) vs. The Advisory Board (ABCO)

The Advisory Board (NASDAQ: ABCO) and Worldpay (NYSE:WP) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings for The Advisory Board and Worldpay, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Advisory Board 0 10 2 0 2.17
Worldpay 0 4 27 1 2.91

The Advisory Board presently has a consensus target price of $52.23, suggesting a potential downside of 2.97%. Worldpay has a consensus target price of $82.93, suggesting a potential upside of 9.80%. Given Worldpay’s stronger consensus rating and higher possible upside, analysts clearly believe Worldpay is more favorable than The Advisory Board.

Insider & Institutional Ownership

95.5% of The Advisory Board shares are owned by institutional investors. 4.7% of The Advisory Board shares are owned by insiders. Comparatively, 1.3% of Worldpay shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

The Advisory Board has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Worldpay has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Valuation and Earnings

This table compares The Advisory Board and Worldpay’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Advisory Board $803.42 million 2.73 $91.23 million $1.74 30.94
Worldpay $3.58 billion 3.75 $213.20 million $1.44 52.45

Worldpay has higher revenue and earnings than The Advisory Board. The Advisory Board is trading at a lower price-to-earnings ratio than Worldpay, indicating that it is currently the more affordable of the two stocks.


This table compares The Advisory Board and Worldpay’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Advisory Board -3.42% 0.48% -1.23%
Worldpay 6.07% 41.19% 7.92%


Worldpay beats The Advisory Board on 11 of the 15 factors compared between the two stocks.

The Advisory Board Company Profile

The Advisory Board Company is a provider of software and solutions to the healthcare and higher education industries. The Company offers subscription-based membership programs, software and data-enabled services. All of its programs are rooted in best practices and extends across four areas, including Best practices research, Technology, Data-enabled services and Consulting services. The best practices research and insight programs provide the foundation for all of its other programs. The Company offers technology analytics programs anchored by cloud-based software applications that surface performance improvement opportunities to accelerate progress. Through its consulting services, the Company provides on-the-ground support for performance improvement initiatives, as well as best practice professional management of areas of the hospital or medical group. The Company’s data-enabled services are primarily focused in the area of enrollment management.

Worldpay Company Profile

Worldpay, Inc., formerly Vantiv, Inc., is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services.

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