Comparing Global Payments (NYSE:GPN) and Remitly Global (NASDAQ:RELY)

Remitly Global (NASDAQ:RELY) and Global Payments (NYSE:GPN) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Remitly Global and Global Payments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Remitly Global	0	1	8	0	2.89
Global Payments	1	18	11	0	2.33

Remitly Global currently has a consensus target price of $29.00, indicating a potential upside of 47.58%. Global Payments has a consensus target price of $112.2083, indicating a potential upside of 28.61%. Given Remitly Global’s stronger consensus rating and higher probable upside, equities analysts clearly believe Remitly Global is more favorable than Global Payments.

Valuation and Earnings

This table compares Remitly Global 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
Remitly Global	$1.26 billion	3.21	-$36.98 million	$0.06	327.50
Global Payments	$10.11 billion	2.09	$1.57 billion	$5.72	15.25

Global Payments has higher revenue and earnings than Remitly Global. Global Payments is trading at a lower price-to-earnings ratio than Remitly Global, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Remitly Global has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Global Payments has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares Remitly Global and Global Payments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Remitly Global	0.96%	2.31%	1.51%
Global Payments	15.07%	12.47%	5.97%

Institutional and Insider Ownership

74.3% of Remitly Global shares are held by institutional investors. Comparatively, 89.8% of Global Payments shares are held by institutional investors. 7.5% of Remitly Global shares are held by company insiders. Comparatively, 1.0% of Global Payments shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Global Payments beats Remitly Global on 9 of the 14 factors compared between the two stocks.

About Remitly Global

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.

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.