Contrasting USA Technologies (OTCMKTS:USAT) & Diebold Nixdorf (OTCMKTS:DBD)

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

Profitability

This table compares USA Technologies and Diebold Nixdorf’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USA Technologies -25.33% -29.43% -18.08%
Diebold Nixdorf -7.53% N/A -1.31%

Volatility & Risk

USA Technologies has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Diebold Nixdorf has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500.

Institutional and Insider Ownership

52.7% of USA Technologies shares are held by institutional investors. Comparatively, 87.8% of Diebold Nixdorf shares are held by institutional investors. 4.4% of USA Technologies shares are held by insiders. Comparatively, 0.9% of Diebold Nixdorf shares are held 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.

Earnings & Valuation

This table compares USA Technologies and Diebold Nixdorf’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
USA Technologies $143.80 million 2.74 -$32.03 million N/A N/A
Diebold Nixdorf $4.58 billion 0.13 -$568.70 million ($1.03) -7.71

USA Technologies has higher earnings, but lower revenue than Diebold Nixdorf.

Analyst Ratings

This is a summary of current ratings and target prices for USA Technologies and Diebold Nixdorf, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USA Technologies 0 0 1 0 3.00
Diebold Nixdorf 0 1 2 0 2.67

Diebold Nixdorf has a consensus price target of $14.33, indicating a potential upside of 80.52%. Given Diebold Nixdorf’s higher probable upside, analysts clearly believe Diebold Nixdorf is more favorable than USA Technologies.

Summary

Diebold Nixdorf beats USA Technologies on 8 of the 12 factors compared between the two stocks.

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.

About Diebold Nixdorf

Diebold Nixdorf, Incorporated provides connected commerce solutions to financial institutions and retailers in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. The company operates through two segments, Banking and Retail. The Banking segment offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools, and kiosk technologies, as well as physical security solutions; and front-end applications for consumer connection points and back-end platforms that manage channel transactions, operations and integration and facilitate omnichannel transactions, endpoint monitoring, remote asset management, customer marketing, merchandise management, and analytics. This segment also provides banking product-related services comprising proactive monitoring and rapid resolution of incidents through remote service capabilities or an on-site visit; and first and second line maintenance, preventive maintenance and on-demand, and managed and outsourcing services. The Retail segment offers DN Vynamic software suite; mobile point of sale and self-checkout terminals; and banknote and coin processing systems, as well as retail customer's product-related services. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf, Incorporated in December 2016. Diebold Nixdorf, Incorporated was founded in 1859 and is headquartered in North Canton, Ohio.

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