Head to Head Analysis: Global Payments (NYSE:GPN) and Sito Mobile (NYSE:SITO)

Global Payments (NYSE:GPN) and Sito Mobile (NASDAQ:SITO) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

97.5% of Global Payments shares are owned by institutional investors. Comparatively, 12.1% of Sito Mobile shares are owned by institutional investors. 0.9% of Global Payments shares are owned by insiders. Comparatively, 3.2% of Sito Mobile shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Global Payments and Sito Mobile’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Payments $3.37 billion 7.41 $452.05 million $5.19 30.58
Sito Mobile $39.75 million 0.58 -$17.07 million ($0.68) -1.32

Global Payments has higher revenue and earnings than Sito Mobile. Sito Mobile is trading at a lower price-to-earnings ratio than Global Payments, indicating that it is currently the more affordable of the two stocks.

Dividends

Global Payments pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Sito Mobile does not pay a dividend. Global Payments pays out 0.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Global Payments and Sito Mobile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Payments 1 5 18 0 2.71
Sito Mobile 0 1 2 0 2.67

Global Payments presently has a consensus price target of $145.70, suggesting a potential downside of 8.19%. Sito Mobile has a consensus price target of $6.00, suggesting a potential upside of 566.74%. Given Sito Mobile’s higher probable upside, analysts plainly believe Sito Mobile is more favorable than Global Payments.

Profitability

This table compares Global Payments and Sito Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Payments 13.69% 19.83% 6.05%
Sito Mobile -45.55% -129.76% -72.94%

Volatility & Risk

Global Payments has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Sito Mobile has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Summary

Global Payments beats Sito Mobile on 12 of the 16 factors compared between the two stocks.

Global Payments Company Profile

Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments. The company operates in three segments: North America, Europe, and Asia-Pacific. It offers authorization services, settlement and funding services, customer support and help-desk functions, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and statements, and online reporting services. The company also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added services, such as analytic and engagement tools, as well as payroll services. In addition, it offers credit and debit card transaction processing services for various international card brands, including American Express, Discover Card, JCB, MasterCard, UnionPay International, and Visa; and non-traditional payment methods, as well as certain domestic debit networks, such as Interac in Canada. Further, the company provides e-commerce and omnichannel solutions; and gaming solutions to licensed gaming operators. It serves customers in various industries comprising education, restaurant, event management, hospitality, retail, healthcare, convenience stores and petroleum, professional services, automotive, and lodging. The company markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations in 32 countries of North America, Europe, the Asia-Pacific region, and Brazil. Global Payments Inc. was founded in 1967 and is headquartered in Atlanta, Georgia.

Sito Mobile Company Profile

SITO Mobile, Ltd. provides advertisement delivery, measurement and attribution, and consumer insights using its proprietary location-based marketing intelligence platform in the United States and Canada. It offers Ad Placement, which delivers advertisements on behalf of its customers to audiences of existing and prospective consumers in a privacy compliant manner; and advertisements across television, desktop, social media, and digital out of home platforms. The company also provides measurement and attribution products, including Real-time Verified Walk-In, a platform built in-house working in tandem with a data management platform and demand side platform; Location, Audience and Behavior Sciences reports that provide an analysis of a customer's audience, breaking down location, and purchase and demographic data against various control groups for selected targeted audiences in real time; and Purchase Science Reports, which offer transaction data to make marketing campaigns relevant and measurable. In addition, it offers Insights products, such as Consumer Behavior and Location Sciences, which explores the consumer journey and presents strategic knowledge assets and actionable insights for executives and strategic decision makers looking to understand and influence consumer behaviors. The company provides its services to brands, advertising agencies, out-of-home advertisers, media companies, and non-media companies through salesforce and account management teams. The company was formerly known as Single Touch Systems, Inc. and changed its name to SITO Mobile, Ltd. in September 2014. SITO Mobile, Ltd. was incorporated in 2000 and is based in Jersey City, New Jersey.

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