USA Technologies (USAT) & Diebold Nixdorf (DBD) Head-To-Head Comparison

USA Technologies (NASDAQ: USAT) and Diebold Nixdorf (NYSE:DBD) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Risk and Volatility

USA Technologies has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Diebold Nixdorf has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500.

Dividends

Diebold Nixdorf pays an annual dividend of $0.40 per share and has a dividend yield of 3.2%. USA Technologies does not pay a dividend. Diebold Nixdorf pays out 35.4% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
USA Technologies -8.83% 3.60% 2.30%
Diebold Nixdorf -5.36% 12.89% 1.34%

Institutional & Insider Ownership

58.4% of USA Technologies shares are held by institutional investors. 4.4% of USA Technologies shares are held by company insiders. Comparatively, 0.7% of Diebold Nixdorf shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares USA Technologies and Diebold Nixdorf’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
USA Technologies $104.09 million 6.03 -$1.85 million ($0.02) -585.00
Diebold Nixdorf $4.61 billion 0.21 -$233.10 million $1.13 11.19

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for USA Technologies and Diebold Nixdorf, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USA Technologies 0 0 4 0 3.00
Diebold Nixdorf 0 5 1 0 2.17

USA Technologies presently has a consensus target price of $12.50, indicating a potential upside of 6.84%. Diebold Nixdorf has a consensus target price of $19.80, indicating a potential upside of 56.52%. Given Diebold Nixdorf’s higher probable upside, analysts clearly believe Diebold Nixdorf is more favorable than USA Technologies.

USA Technologies Company Profile

USA Technologies, Inc. provides wireless networking, cashless transactions, asset monitoring, and other value-added services in the United States and internationally. It designs and markets systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services. The company's ePort Connect solution offers various POS options, card processing, wireless connectivity, customer/consumer, online sales reporting, M2M telemetry and DEX data transfer, over-the-air update capabilities, deployment planning, and value-added services, as well as planning, project management, installation support, marketing, and performance evaluation services. The company's products include ePort, a device that is used in self-service, unattended markets, such as vending, amusement and arcade, and various other kiosk applications, as well as facilitates cashless payments by capturing payment information and transmitting it to its network for authorization with the payment system. It primarily serves small ticket, and beverage and food vending industries, as well as unattended point of sale markets, including amusement, commercial laundry, kiosk, and other. USA Technologies, Inc. was founded in 1992 and is headquartered in Malvern, Pennsylvania.

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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