Financial Review: Euronet Worldwide (NASDAQ:EEFT) and StoneX Group (NASDAQ:SNEX)

Euronet Worldwide (NASDAQ:EEFT) and StoneX Group (NASDAQ:SNEX) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Profitability

This table compares Euronet Worldwide and StoneX Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Euronet Worldwide	8.06%	26.62%	5.66%
StoneX Group	0.23%	16.20%	0.97%

Insider & Institutional Ownership

91.6% of Euronet Worldwide shares are held by institutional investors. Comparatively, 75.9% of StoneX Group shares are held by institutional investors. 11.2% of Euronet Worldwide shares are held by company insiders. Comparatively, 11.7% of StoneX Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Euronet Worldwide has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, StoneX Group has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Euronet Worldwide and StoneX Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Euronet Worldwide	0	3	5	1	2.78
StoneX Group	0	1	2	0	2.67

Euronet Worldwide presently has a consensus price target of $121.17, indicating a potential upside of 45.79%. Given Euronet Worldwide’s stronger consensus rating and higher probable upside, equities analysts clearly believe Euronet Worldwide is more favorable than StoneX Group.

Valuation & Earnings

This table compares Euronet Worldwide and StoneX Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Euronet Worldwide	$3.99 billion	0.85	$306.00 million	$7.29	11.40
StoneX Group	$99.89 billion	0.05	$260.80 million	$5.87	16.33

Euronet Worldwide has higher earnings, but lower revenue than StoneX Group. Euronet Worldwide is trading at a lower price-to-earnings ratio than StoneX Group, indicating that it is currently the more affordable of the two stocks.

Summary

Euronet Worldwide beats StoneX Group on 12 of the 15 factors compared between the two stocks.

About Euronet Worldwide

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. It operates through three segments: Electronic Fund Transfer Processing, epay, and Money Transfer. The Electronic Fund Transfer Processing segment provides electronic payment solutions, including automated teller machine (ATM) cash withdrawal and deposit services, ATM network participation, outsourced ATM and point-of-sale (POS) management solutions, credit and debit and prepaid card outsourcing, card issuing, and merchant acquiring services. It also offers ATM and POS currency conversion, ATM surcharge, advertising, customer relationship management, mobile top-up, bill payment, fraud management, foreign remittance and cardless payout, banknote recycling, and tax-refund services; and integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems. The epay segment distributes and processes prepaid mobile airtime and other electronic payment products; and provides payment processing services for various prepaid products, cards, and services, as well as vouchers and physical gift fulfillment, and gift card distribution and processing services. This segment operates a network of approximately 821,000 POS terminals. The Money Transfer segment offers consumer-to-consumer and account-to-account money transfer, customers bill payment, check cashing, foreign currency exchange, mobile top-up, and cash management and foreign currency risk management services, as well as payment alternatives, such as money orders and prepaid debit cards. The company was formerly known as Euronet Services, Inc. and changed its name to Euronet Worldwide, Inc. in August 2001. Euronet Worldwide, Inc. was founded in 1994 and is headquartered in Leawood, Kansas.

About StoneX Group

StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments. The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business. The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com. The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.