Global Payments (NYSE:GPN – Get Free Report) and Cantaloupe (NASDAQ:CTLP – Get Free Report) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Institutional and Insider Ownership
89.8% of Global Payments shares are held by institutional investors. Comparatively, 75.8% of Cantaloupe shares are held by institutional investors. 1.0% of Global Payments shares are held by insiders. Comparatively, 6.3% of Cantaloupe 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.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Global Payments and Cantaloupe, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Global Payments | 1 | 18 | 11 | 0 | 2.33 |
Cantaloupe | 1 | 5 | 1 | 0 | 2.00 |
Earnings and Valuation
This table compares Global Payments and Cantaloupe”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Global Payments | $10.11 billion | 1.98 | $1.57 billion | $6.20 | 13.21 |
Cantaloupe | $268.60 million | 3.02 | $11.99 million | $0.79 | 14.03 |
Global Payments has higher revenue and earnings than Cantaloupe. Global Payments is trading at a lower price-to-earnings ratio than Cantaloupe, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Global Payments has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Cantaloupe has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.
Profitability
This table compares Global Payments and Cantaloupe’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Global Payments | 15.07% | 12.47% | 5.97% |
Cantaloupe | 20.47% | 9.02% | 5.45% |
Summary
Global Payments beats Cantaloupe on 10 of the 14 factors compared between the two stocks.
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.
About Cantaloupe
Cantaloupe, Inc., a digital payments and software services company, provides technology solutions for self-service commerce market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides G11 cashless and pulse kits that are 4G LTE digital payment devices for payment and consumer engagement applications; G11 chip kit, a digital reader that accepts contact EMV and contactless EMV payment methods; Engage series comprising Engage and Engage Combo, which are digital touchscreen devices that offers networking, security, and interactivity payment methods; and card touchscreen card readers, including P66, P100, P100Pro, and P30. In addition, the company offers self-checkout kiosks,?smart store?concepts, and the Cantaloupe Go management platform comprising Go Mini, Go MiniX, Go Plus100, Go Plus200, Go Plus300, Go Max, Cooler Cafe, and Smart Market; Go Portal, a robust cloud-based platform; and Cheq products, which supports attended and unattended self-service kiosks for the stadium, entertainment, and festival sectors. Further, it provides integrated software services for payment or asset tracking devices in the field to connect into platform for advanced data management, analytics, route scheduling, and loyalty and reward programs; and a range of self-service hardware solutions for vending, micro-markets, amusement, arcade, commercial laundry, air/vacuum, car wash, and other applications. Additionally, the company offers professional, network infrastructure, card processing, and customer/consumer services. Cantaloupe, Inc. was formerly known as USA Technologies, Inc. The company was incorporated in 1992 and is headquartered in Malvern, Pennsylvania.
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