Head to Head Comparison: VeriFone (PAY) versus Diebold Nixdorf (DBD)

VeriFone (NYSE: PAY) and Diebold Nixdorf (NYSE:DBD) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Risk & Volatility

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VeriFone has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500. Comparatively, Diebold Nixdorf has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.

Profitability

This table compares VeriFone and Diebold Nixdorf’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VeriFone -8.09% 14.11% 4.70%
Diebold Nixdorf -5.06% 14.90% 1.62%

Valuation and Earnings

This table compares VeriFone and Diebold Nixdorf’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VeriFone $1.87 billion 0.89 -$173.82 million $0.95 15.97
Diebold Nixdorf $4.61 billion 0.24 -$233.10 million $1.13 12.83

VeriFone has higher earnings, but lower revenue than Diebold Nixdorf. Diebold Nixdorf is trading at a lower price-to-earnings ratio than VeriFone, indicating that it is currently the more affordable of the two stocks.

Dividends

Diebold Nixdorf pays an annual dividend of $0.40 per share and has a dividend yield of 2.8%. VeriFone does not pay a dividend. Diebold Nixdorf pays out 35.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and target prices for VeriFone and Diebold Nixdorf, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VeriFone 1 10 3 0 2.14
Diebold Nixdorf 0 3 4 0 2.57

VeriFone presently has a consensus price target of $20.80, suggesting a potential upside of 37.11%. Diebold Nixdorf has a consensus price target of $20.80, suggesting a potential upside of 43.45%. Given Diebold Nixdorf’s stronger consensus rating and higher probable upside, analysts plainly believe Diebold Nixdorf is more favorable than VeriFone.

Summary

Diebold Nixdorf beats VeriFone on 9 of the 14 factors compared between the two stocks.

VeriFone Company Profile

VeriFone Systems, Inc. offers payments and commerce solutions. The Company is engaged in designing, manufacturing, marketing and supplying a range of payment solutions and complementary services. It provides solutions and services for the retail point-of-sale (POS) that enable various forms of commerce. The Company’s segments include Verifone Systems and Verifone Services. The Verifone Systems segment delivers point of sale electronic payment devices that run the operating systems, security and encryption software, and certified payment software for both payments and commerce. The Verifone Services segment delivers device-related leasing and maintenance, payment transaction routing and reporting, and commerce based services, such as advertising on digital screens. The Company operates in various sectors, such as financial services, retail, petroleum, restaurant, hospitality, transportation and healthcare.

Diebold Nixdorf Company Profile

Diebold Nixdorf, Incorporated provides connected commerce solutions to financial institutions and retailers in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. The company operates in three segments: Services, Software, and Systems. The Services segment provides product-related services, such as first and second line maintenance, preventive maintenance, and on-demand services; and managed and outsourcing services, including store lifecycle management, self-service fleet management, branch lifecycle management, automated teller machine (ATM) as-a-service, and managed mobility services, as well as cash management services. This segment offers services to ATMs, point of sale (POS) terminals, self-checkout systems (SCO), and other distributed assets. The Software segment provides front-end applications for consumer connection points; and back-end platforms that manage channel transactions, operations, and integration. Its products include Vynamic Engage, a cloud-based software-as-a-service solution that enables a 360-degree view of customer behavior at various touchpoints; Vynamic Mobile Shopper, which offers mobile self-scanning capabilities through retail-hardened devices and consumer smartphones; and Vynamic Mobile Retail, a mobile scan and go application that includes personalization features of Vynamic Engage. The Systems segment offers cash recyclers and dispensers, intelligent deposit terminals, teller automation and kiosk technologies, and physical security solutions for banking customers; and modular, integrated, and mobile POS systems, as well as printers, scales, mobile scanners, banknote and coin processing systems, and self-checkout terminals and ordering kiosks for retail customers. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf, Incorporated in December 2016. Diebold Nixdorf, Incorporated was founded in 1859 and is based in North Canton, Ohio.

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