Financial Review: NCR (NYSE:NCR) vs. USA Technologies (NYSE:USAT)

NCR (NYSE:NCR) and USA Technologies (OTCMKTS:USAT) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Insider & Institutional Ownership

88.4% of NCR shares are held by institutional investors. Comparatively, 68.1% of USA Technologies shares are held by institutional investors. 1.0% of NCR shares are held by insiders. Comparatively, 4.4% of USA Technologies shares are held 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.

Volatility and Risk

NCR has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, USA Technologies has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for NCR and USA Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NCR 0 2 3 1 2.83
USA Technologies 0 0 1 0 3.00

NCR presently has a consensus target price of $38.67, indicating a potential upside of 22.91%. Given NCR’s higher probable upside, equities research analysts plainly believe NCR is more favorable than USA Technologies.

Profitability

This table compares NCR and USA Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NCR 2.47% 86.80% 5.06%
USA Technologies -22.27% -25.65% -16.20%

Earnings and Valuation

This table compares NCR and USA Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NCR $6.41 billion 0.63 -$88.00 million $2.62 12.01
USA Technologies $143.80 million 2.98 -$32.03 million N/A N/A

USA Technologies has lower revenue, but higher earnings than NCR.

Summary

NCR beats USA Technologies on 9 of the 13 factors compared between the two stocks.

About NCR

NCR Corporation provides software and services for the financial, retail, hospitality, telecommunications, and technology industries worldwide. The company's Software segment offers industry-based software platforms, applications, and application suites for the financial services, retail, hospitality, and small business industries; and cash management software, video banking software, fraud and loss prevention, check and document imaging, remote-deposit capture, and customer-facing mobile and digital banking applications for the financial services industry. This segment also provides electronic and mobile payment solutions, sector-specific point of sale (POS) software applications, and back-office inventory, and store and restaurant management applications for the retail and hospitality industries; and software support and maintenance, and consulting and implementation services for its software solutions. Its Services segment offers assessment and preparation, staging, installation, implementation, and maintenance and support; and systems management and managed services for its hardware solutions, as well as installation, maintenance, and services for third party networking products and computer hardware. The company's Hardware segment offers multi-function and thin-client ATMs, interactive teller machines, cash dispensers, cash recycling ATMs, and hardware for check and image processing; financial services hardware; and POS terminals, self-checkout kiosks, order and payment kiosks, bar code scanners, printers, and peripherals to retailers, restaurants, food service companies, and entertainment and sports venues. This segment also provides self-check in/out kiosk solutions for airlines, hotels, and casinos; and wayfinding solutions, digital signage, bill payment kiosks, and gift registries, as well as resells third party networking products. NCR Corporation was founded in 1884 and is headquartered in Atlanta, Georgia.

About USA Technologies

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.

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