Head to Head Review: Points International (PCOM) and Global Payments (NYSE:GPN)

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

Earnings and Valuation

This table compares Global Payments and Points International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Payments $3.37 billion 6.49 $452.05 million $5.19 26.65
Points International $376.24 million 0.44 $7.79 million N/A N/A

Global Payments has higher revenue and earnings than Points International.

Analyst Recommendations

This is a summary of recent recommendations for Global Payments and Points International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Payments 1 5 14 0 2.65
Points International 0 0 1 0 3.00

Global Payments currently has a consensus price target of $134.80, indicating a potential downside of 2.54%. Points International has a consensus price target of $20.00, indicating a potential upside of 70.21%. Given Points International’s stronger consensus rating and higher possible upside, analysts plainly believe Points International is more favorable than Global Payments.

Dividends

Global Payments pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Points International does not pay a dividend. Global Payments pays out 0.8% of its earnings in the form of a dividend.

Volatility and Risk

Global Payments has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Points International has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares Global Payments and Points International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Payments 13.43% 19.11% 6.04%
Points International 2.07% 19.53% 6.81%

Institutional & Insider Ownership

98.8% of Global Payments shares are owned by institutional investors. Comparatively, 51.0% of Points International shares are owned by institutional investors. 0.9% of Global Payments shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Global Payments beats Points International on 10 of the 15 factors compared between the two stocks.

About Global Payments

Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments. The company operates in three segments: North America, Europe, and Asia-Pacific. It offers authorization services, settlement and funding services, customer support and help-desk functions, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and statements, and online reporting services. The company also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added services, such as analytic and engagement tools, as well as payroll services. In addition, it offers credit and debit card transaction processing services for various international card brands, including American Express, Discover Card, JCB, MasterCard, UnionPay International, and Visa; and non-traditional payment methods, as well as certain domestic debit networks, such as Interac in Canada. Further, the company provides e-commerce and omnichannel solutions; and gaming solutions to licensed gaming operators. It serves customers in various industries comprising education, restaurant, event management, hospitality, retail, healthcare, convenience stores and petroleum, professional services, automotive, and lodging. The company 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 in 32 countries of North America, Europe, the Asia-Pacific region, and Brazil. Global Payments Inc. was founded in 1967 and is headquartered in Atlanta, Georgia.

About Points International

Points International Ltd. provides e-commerce and technology services to loyalty program operators in the United States, Europe, and internationally. It operates through three segments: Loyalty Currency Retailing, Platform Partners, and Points Travel. The Loyalty Currency Retailing segment provides products and services designed to help loyalty program members unlock the value of their loyalty currency and accelerate the time to a reward. The Platform Partners segment offers various applications that are connected to and enabled by the functionality of the loyalty commerce platform (LCP); and provides loyalty programs, merchants, and other consumer service applications leverage the LCP to distribute loyalty currency and loyalty commerce transactions through multiple channels, including loyalty program, co-branded, and third-party channels. The Points Travel segment provides online travel bookings, including Points Travel and PointsHound services. The company is headquartered in Toronto, Canada.

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