Worldpay (WP) versus FleetCor Technologies (NYSE:FLT) Critical Survey

FleetCor Technologies (NYSE:FLT) and Worldpay (NYSE:WP) are both large-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Valuation & Earnings

This table compares FleetCor Technologies and Worldpay’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FleetCor Technologies $2.43 billion 9.54 $811.48 million $9.93 27.12
Worldpay $3.93 billion 9.54 $12.80 million $3.68 32.71

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

Insider and Institutional Ownership

94.7% of FleetCor Technologies shares are held by institutional investors. Comparatively, 89.4% of Worldpay shares are held by institutional investors. 5.4% of FleetCor Technologies shares are held by company insiders. Comparatively, 0.8% of Worldpay shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for FleetCor Technologies and Worldpay, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FleetCor Technologies 0 4 8 0 2.67
Worldpay 0 15 14 0 2.48

FleetCor Technologies presently has a consensus target price of $253.18, suggesting a potential downside of 5.97%. Worldpay has a consensus target price of $110.62, suggesting a potential downside of 8.10%. Given FleetCor Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe FleetCor Technologies is more favorable than Worldpay.

Profitability

This table compares FleetCor Technologies and Worldpay’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FleetCor Technologies 32.74% 26.56% 8.07%
Worldpay 3.63% 11.28% 4.51%

Risk and Volatility

FleetCor Technologies has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Worldpay has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Summary

FleetCor Technologies beats Worldpay on 10 of the 14 factors compared between the two stocks.

FleetCor Technologies Company Profile

FleetCor Technologies, Inc. provides commercial payment solutions in North America, Latin America, Europe, and Australasia. The company offers fuel payment solutions to businesses and government entities that operate vehicle fleets, as well as to oil and leasing companies, and fuel marketers. Its fuel payment products are in the form of plastic cards, electronic RFID tags, and paper vouchers to purchase fuel, oil, vehicle maintenance supplies and services, and building supplies. The company also provides lodging payment solutions to businesses that have employees who travel overnight for work purposes. In addition, it offers electronic toll and parking payments products to businesses and consumers in the form of RFID tags affixed to vehicles' windshields; and prepaid paper vouchers as a means of payment on toll roads. Further, the company provides corporate payments solutions with vertical-specific applications, which enable its customers to manage and control electronic payments across their enterprise, optimize corporate spending, and offer innovative services that enhance employee efficiency and customer loyalty. Its primary corporate payments products include virtual cards, purchasing cards, travel and entertainment cards, payroll cards, and cross-border payment facilitation. Additionally, it offers gift card product management and processing services, such as card design, production and packaging, delivery and fulfillment, card and account management, transaction processing, promotion development and management, Website design and hosting, program analytics, and card distribution channel management. The company also provides vehicle maintenance, employee benefit payment, and long haul transportation-related services. The company markets its products and services through field sales, telesales, direct marketing, point-of-sale marketing, and the Internet. FleetCor Technologies, Inc. was founded in 1986 and is headquartered in Peachtree Corners, Georgia.

Worldpay Company Profile

Worldpay, Inc., through its subsidiary, Worldpay Holding, LLC, provides electronic payment processing services in the United States, Europe, Asia, and Australasia. It operates in two segments, Technology Solutions, Merchant Solutions, and Issuer Solutions. The company offers merchant acquiring and payment processing services, such as authorization and settlement, customer service, chargeback and retrieval processing, and interchange management. It also provides value-added services, such data analytics and information management solutions, foreign currency management, and various funding options; and security solutions, including point-to-point encryption and tokenization at the point of sale and for e-commerce transactions. In addition, the company offers card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine driving, portfolio optimization, data analytics, and card program marketing, as well as network gateway and switching services. Further, it provides card and statement production, and collections and inbound/outbound call centers. The company serves merchants and financial institutions comprising regional banks, community banks, credit unions, and regional personal identification number networks through direct sales forces and referral partners. The company was formerly known as Vantiv, Inc. and changed its name to Worldpay, Inc. in January 2018. Worldpay, Inc. was incorporated in 2009 and is headquartered in Cincinnati, Ohio.

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