Reviewing Global Payments (NYSE:GPN) & Nayax (NASDAQ:NYAX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nayax	8.87%	11.60%	3.54%
Global Payments	16.92%	12.72%	5.99%

Volatility and Risk

Nayax has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, Global Payments has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Nayax and Global Payments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nayax	1	3	3	0	2.29
Global Payments	2	17	5	1	2.20

Nayax presently has a consensus target price of $51.67, indicating a potential downside of 4.37%. Global Payments has a consensus target price of $91.18, indicating a potential upside of 38.23%. Given Global Payments’ higher possible upside, analysts plainly believe Global Payments is more favorable than Nayax.

Insider & Institutional Ownership

34.9% of Nayax shares are held by institutional investors. Comparatively, 89.8% of Global Payments shares are held by institutional investors. 1.0% of Global Payments shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Nayax and Global Payments”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nayax	$400.43 million	4.94	$35.52 million	$0.95	56.87
Global Payments	$7.71 billion	2.36	$1.40 billion	$5.79	11.39

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

Summary

Global Payments beats Nayax on 12 of the 15 factors compared between the two stocks.

About Nayax

Nayax Ltd., a fintech company, operates system and payment platform for multiple retailers in the United States, Europe, the United Kingdom, Australia, Israel, and rest of the world. The company offers AMIT 3.0, a machine-to-machine vending telemetry solution; Nayax Core, a management and monitoring software for vending machines and other unattended machines; MoMa, a mobile app for unattended machine; Tigapo back-office software suite, a cloud-based platform; EV Core, a smart, cloud-based management platform; Retail Management Cloud, a comprehensive attended retail management platform; Loyalty and Marketing Suite, a consumer engagement marketing and loyalty platform; Monyx Wallet, a digital wallet app enabling cashless payments with mobile phones; Weezmo, a consumer engagement and marketing platform; and Tigapo app, a proprietary mobile app to help family entertainment center businesses. It provides electric vehicle charging stations; VPOS Touch, a credit card reader cashless payment device; VPOS Fusion, a cashless payment card reader; ONYX, a contactless card reader and telemetry device; NOVA 156, an electronic cash register; DOT, a smart QR and barcode reader; UNO Plus and UNO 8, which are EMV and FeliCa contactless readers; EMV SOM, a PCI-PTS ready contactless EMV reader module; Nova Market, a cashless micro market and self-checkout solution; NOVA 55, an a handheld smart point of sale (POS) device; NOVA 45, a handheld mini smart terminals for attended POS; and Retail One, a universal retail solution that integrates directly with SAP. The company sells its products directly, as well as through resellers and distributors. It serves various verticals, including vending machines, coffee machines, unattended checkout counters, self-service kiosks, ticketing machines, car wash stations, gaming machines, amusement rides, laundromats, and EV charging stations. Nayax Ltd. was incorporated in 2005 and is headquartered in Herzliya, Israel.

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.