Analyzing Worldpay (WP) and Its Rivals

Worldpay (NYSE: WP) is one of 99 publicly-traded companies in the “Business Support Services” industry, but how does it contrast to its peers? We will compare Worldpay to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, valuation, risk, dividends and earnings.

Volatility & Risk

Worldpay has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Worldpay’s peers have a beta of 1.11, meaning that their average stock price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Worldpay and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Worldpay 0 4 27 1 2.91
Worldpay Competitors 717 2013 2767 68 2.39

Worldpay currently has a consensus target price of $82.93, indicating a potential upside of 10.09%. As a group, “Business Support Services” companies have a potential upside of 4.08%. Given Worldpay’s stronger consensus rating and higher possible upside, research analysts clearly believe Worldpay is more favorable than its peers.

Earnings and Valuation

This table compares Worldpay and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Worldpay $3.58 billion $213.20 million 51.95
Worldpay Competitors $1.27 billion $103.59 million 1,292.65

Worldpay has higher revenue and earnings than its peers. Worldpay is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

62.6% of shares of all “Business Support Services” companies are owned by institutional investors. 1.3% of Worldpay shares are owned by company insiders. Comparatively, 12.7% of shares of all “Business Support Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Worldpay and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Worldpay 6.07% 41.19% 7.92%
Worldpay Competitors -17.96% -17.98% 1.55%

Summary

Worldpay beats its peers on 9 of the 13 factors compared.

About Worldpay

Worldpay, Inc., formerly Vantiv, Inc., is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services.

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