Analyzing Worldpay (NYSE:WP) and CIELO S A/S (NYSE:CIOXY)

Worldpay (NYSE:WP) and CIELO S A/S (OTCMKTS:CIOXY) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Dividends

CIELO S A/S pays an annual dividend of $0.30 per share and has a dividend yield of 16.6%. Worldpay does not pay a dividend.

Earnings & Valuation

This table compares Worldpay and CIELO S A/S’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Worldpay $3.93 billion 10.40 $12.80 million $3.68 35.65
CIELO S A/S $3.22 billion 1.52 $1.12 billion N/A N/A

CIELO S A/S has lower revenue, but higher earnings than Worldpay.

Insider & Institutional Ownership

91.8% of Worldpay shares are owned by institutional investors. Comparatively, 0.0% of CIELO S A/S shares are owned by institutional investors. 0.8% of Worldpay shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Worldpay and CIELO S A/S, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Worldpay 0 15 14 0 2.48
CIELO S A/S 0 2 1 0 2.33

Worldpay presently has a consensus price target of $110.62, indicating a potential downside of 15.70%. Given Worldpay’s stronger consensus rating and higher probable upside, equities analysts clearly believe Worldpay is more favorable than CIELO S A/S.

Volatility and Risk

Worldpay has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, CIELO S A/S has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Profitability

This table compares Worldpay and CIELO S A/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Worldpay 3.63% 11.28% 4.51%
CIELO S A/S 26.20% 19.91% 3.51%

Summary

Worldpay beats CIELO S A/S on 9 of the 14 factors compared between the two stocks.

About Worldpay

Worldpay, Inc., through its subsidiary, Worldpay Holding, LLC, provides electronic payment processing services in the United States, Europe, Asia, and Australasia. It operates in two segments, Technology Solutions, Merchant Solutions, and Issuer Solutions. The company offers merchant acquiring and payment processing services, such as authorization and settlement, customer service, chargeback and retrieval processing, and interchange management. It also provides value-added services, such data analytics and information management solutions, foreign currency management, and various funding options; and security solutions, including point-to-point encryption and tokenization at the point of sale and for e-commerce transactions. In addition, the company offers card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine driving, portfolio optimization, data analytics, and card program marketing, as well as network gateway and switching services. Further, it provides card and statement production, and collections and inbound/outbound call centers. The company serves merchants and financial institutions comprising regional banks, community banks, credit unions, and regional personal identification number networks through direct sales forces and referral partners. The company was formerly known as Vantiv, Inc. and changed its name to Worldpay, Inc. in January 2018. Worldpay, Inc. was incorporated in 2009 and is headquartered in Cincinnati, Ohio.

About CIELO S A/S

Cielo S.A., through its subsidiaries, provides payment services in Brazil. The company is involved in the provision of services related to credit and debit cards, and other payment methods, including signing up of merchants and service providers; rental, installation, and maintenance of point of sale terminals; and data capture and processing of electronic and manual transactions. It also offers services related in the processing means of payments that involve cards, maintenance services, and contacts with merchants for acceptance of credit and debit cards; data transmission services to load fixed or mobile phone credits; software development and licensing of computer programs; electronic transactions processing; IT services for collection and management of accounts payable and receivable; and data processing services and support services to medical companies. The company was formerly known as Companhia Brasileira de Meios de Pagamento and changed its name to Cielo S.A. in December 2009. Cielo S.A. was founded in 1995 and is headquartered in Barueri, Brazil.

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