Head-To-Head Review: Global Payments (NYSE:GPN) and Joint Stock Company Kaspi.kz (NASDAQ:KSPI)

Joint Stock Company Kaspi.kz (NASDAQ:KSPI) and Global Payments (NYSE:GPN) are both large-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Volatility and Risk

Joint Stock Company Kaspi.kz has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Global Payments has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Joint Stock Company Kaspi.kz and Global Payments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joint Stock Company Kaspi.kz	0	0	3	0	3.00
Global Payments	1	18	9	0	2.29

Joint Stock Company Kaspi.kz currently has a consensus target price of $135.67, suggesting a potential upside of 65.17%. Global Payments has a consensus target price of $110.91, suggesting a potential upside of 42.56%. Given Joint Stock Company Kaspi.kz’s stronger consensus rating and higher possible upside, research analysts plainly believe Joint Stock Company Kaspi.kz is more favorable than Global Payments.

Dividends

Joint Stock Company Kaspi.kz pays an annual dividend of $3.51 per share and has a dividend yield of 4.3%. Global Payments pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Joint Stock Company Kaspi.kz pays out 33.7% of its earnings in the form of a dividend. Global Payments pays out 16.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Joint Stock Company Kaspi.kz and Global Payments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joint Stock Company Kaspi.kz	39.67%	64.11%	11.76%
Global Payments	15.48%	12.33%	5.82%

Valuation and Earnings

This table compares Joint Stock Company Kaspi.kz and Global Payments”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Joint Stock Company Kaspi.kz	$4.82 billion	3.40	$2.18 billion	$10.42	7.88
Global Payments	$10.11 billion	1.88	$1.57 billion	$6.20	12.55

Joint Stock Company Kaspi.kz has higher earnings, but lower revenue than Global Payments. Joint Stock Company Kaspi.kz is trading at a lower price-to-earnings ratio than Global Payments, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

32.2% of Joint Stock Company Kaspi.kz shares are owned by institutional investors. Comparatively, 89.8% of Global Payments shares are owned by institutional investors. 1.0% of Global Payments shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Joint Stock Company Kaspi.kz beats Global Payments on 10 of the 16 factors compared between the two stocks.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.

About Global Payments

Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, account payables, and electronic payment alternatives solutions for businesses and governments. It 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. The company was founded in 1967 and is headquartered in Atlanta, Georgia.