How Does Global Payments Compare to Its Peers?
US Equity Market Update for October 7, 2015
Global Payments and its peers
An analysis of Global Payments’ income statement in 1Q16 follows:
The net profit margins of Global Payments (GPN), PayPal Holdings (PYPL), Fidelity National Information Services (FIS), Vantiv (VNTV), and Heartland Payment Systems (HPY) are 11.6%, 13.3%, 15.6%, 6.7%, and 3.1%, respectively.
The EPS (earnings per share) of Global Payments, PayPal, Fidelity, Vantiv, and Heartland Payment are $1.32, $0.25, $0.85, $0.24, and $0.56, respectively.
An analysis of Global Payments’ balance sheet in 1Q16 follows:
The current ratios of Global Payments, PayPal, Fidelity, Vantiv, and Heartland Payment are 1.1, 1.6, 1.5, 1.1, and 0.97, respectively.
An analysis of Global Payments’ valuation follows:
The PE (price-to-earnings) ratios of Global Payments, PayPal, Fidelity, Vantiv, and Heartland Payment are 31.1x, 36.4x, 28.3x, 50.8x, and 63.2x, respectively.
The PBV (price-to-book value) ratios of Global Payments, PayPal, Fidelity, Vantiv, and Heartland Payment are 11.1x, 3.1x, 3.1x, 6.9x, and 8.2x, respectively.
According to the above findings, the peers outperformed Global Payments based on the current ratio and PE ratio. However, Global Payments is way ahead of its peers based on EPS and the PBV ratio.
ETFs that invest in Global Payments
The First Trust Mid Cap Growth AlphaDex ETF (FNY) invests 1.7% of its holdings in Global Payments. FNY tracks a tiered equal-weighted index of midcap growth stocks selected by S&P’s AlphaDex selection methodology from the S&P 400 Index.
The PowerShares Russell Midcap Pure Growth ETF (PXMG) invests 1.5% of its holdings in Global Payments. PXMG tracks an index of US growth stocks, ranked from 201 to 1,000 by market cap. Stocks are selected and weighted by price to book, forecast growth and historical sales growth.
The Guggenheim S&P MidCap 400 Pure Growth ETF (RFG) invests 1.3% of its holdings in Global Payments. RFG tracks a factor-weighted index of the S&P 400 companies exhibiting the strongest growth factors.
Compared Global Payments and its ETFs
An analysis of Global Payments’ price movement follows:
The YTD (year-to-date) price movements of Global Payments, FNY, and RFG are 58.9%, -2.5%, and 3.1%, respectively.
An analysis of Global Payments’ valuation follows:
The PE ratios of Global Payments, FNY, PXMG, and RFG are 31.1x, 27.7x, 39.4x, and 22.8x, respectively.
The PBV ratios of Global Payments, FNY, PXMG, and RFG are 11.1x, 3.9x, 6.9x, and 3.6x, respectively.
Global Payments outperformed its ETFs based on the price movement, PE ratio, and PBV ratio.
Browse this series on Market Realist:
