Global Payments (NYSE:GPN) versus PAR Technology (NYSE:PAR) Head-To-Head Review

Global Payments (NYSE:GPN) and PAR Technology (NYSE:PAR) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Global Payments and PAR Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Payments	0	14	6	2	2.45
PAR Technology	1	2	7	0	2.60

Global Payments currently has a consensus target price of $103.37, suggesting a potential upside of 18.24%. PAR Technology has a consensus target price of $74.57, suggesting a potential upside of 106.00%. Given PAR Technology’s stronger consensus rating and higher possible upside, analysts clearly believe PAR Technology is more favorable than Global Payments.

Earnings & Valuation

This table compares Global Payments and PAR Technology”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	2.10	$1.57 billion	$5.72	15.28
PAR Technology	$349.98 million	4.20	-$4.99 million	($2.25)	-16.09

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

Insider & Institutional Ownership

89.8% of Global Payments shares are owned by institutional investors. 1.0% of Global Payments shares are owned by insiders. Comparatively, 3.7% of PAR Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Global Payments and PAR Technology’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%
PAR Technology	-20.64%	-3.16%	-1.90%

Risk & Volatility

Global Payments has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, PAR Technology has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Summary

Global Payments beats PAR Technology on 9 of the 15 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 PAR Technology

PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and kitchen display systems, payment devices, cash drawers, printers, and other peripherals. In addition, this segment provides services, such as hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services comprising inside and outside plant services, and maintenance of infrastructure and information systems; satellite ground system support comprising operations and maintenance, sustainment, upgrades, communications security management, anomaly response/resolution, process improvement, emergency response, and disaster recovery services; and information technology infrastructure library services to the United States Department of Defense, intelligence community (IC), and other federal agencies. This segment also offers various IC support services, systems integration, situational awareness solutions, and mission readiness support services. The company was founded in 1968 and is based in New Hartford, New York.