Analyzing Planet Payment (PLPM) & Euronet Worldwide (NASDAQ:EEFT)

Planet Payment (NASDAQ: PLPM) and Euronet Worldwide (NASDAQ:EEFT) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitabiliy, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares Planet Payment and Euronet Worldwide’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Planet Payment $53.38 million 3.00 $11.45 million $0.45 7.27
Euronet Worldwide $2.05 billion 2.48 $345.38 million $3.09 31.34

Euronet Worldwide has higher revenue and earnings than Planet Payment. Planet Payment is trading at a lower price-to-earnings ratio than Euronet Worldwide, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Planet Payment and Euronet Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Planet Payment 46.33% 28.86% 16.12%
Euronet Worldwide 8.23% 22.32% 7.95%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Planet Payment and Euronet Worldwide, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Planet Payment 0 0 1 0 3.00
Euronet Worldwide 0 0 5 0 3.00

Euronet Worldwide has a consensus price target of $99.75, suggesting a potential upside of 3.02%. Given Euronet Worldwide’s higher probable upside, analysts clearly believe Euronet Worldwide is more favorable than Planet Payment.

Insider & Institutional Ownership

53.2% of Planet Payment shares are held by institutional investors. Comparatively, 94.4% of Euronet Worldwide shares are held by institutional investors. 20.2% of Planet Payment shares are held by insiders. Comparatively, 7.7% of Euronet Worldwide shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Planet Payment has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Euronet Worldwide has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Summary

Euronet Worldwide beats Planet Payment on 8 of the 13 factors compared between the two stocks.

Planet Payment Company Profile

Planet Payment, Inc. is a provider of international payment and transaction processing and multi-currency processing services. The Company operates through two segments: multi-currency processing services and payment processing services. Its multi-currency processing services segment includes Pay In Your Currency, Multi-Currency Pricing and Dynamic Currency Conversion at automated teller machines, enable merchants to offer customized pricing in multiple currencies. Its payment processing services consist of end-to-end authorization, capture, clearing and settlement services to its customers along with localized language support and online access to reconciliation, reporting and analytics services. It provides its services to approximately 118,000 active merchant locations in over 20 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through its acquiring bank and processor customers.

Euronet Worldwide Company Profile

Euronet Worldwide, Inc. is an electronic payments provider. The Company offers payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers. Its product offerings include automated teller machine (ATM), point-of-sale (POS), card outsourcing, card issuing and merchant acquiring services, electronic distribution of prepaid mobile airtime and other electronic payment products. It operates in three segments: EFT Processing Segment provides electronic payment solutions consisting of ATM cash withdrawal and deposit services, outsourced ATM and POS management solutions, and credit and debit card outsourcing; epay Segment provides electronic distribution and processing of prepaid mobile airtime and other electronic payment products and collection services, and Money Transfer Segment provides global consumer-to-consumer money transfer services and global account-to-account money transfer services.

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