Contrasting Worldpay (WP) and Its Peers

Worldpay (NYSE: WP) is one of 95 public companies in the “Business Support Services” industry, but how does it weigh in compared to its rivals? We will compare Worldpay to related companies based on the strength of its earnings, risk, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Valuation & Earnings

This table compares Worldpay and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Worldpay $3.58 billion $213.20 million 54.22
Worldpay Competitors $1.27 billion $103.59 million 1,314.40

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

Risk and Volatility

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Worldpay and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Worldpay 0 4 27 1 2.91
Worldpay Competitors 593 1773 2562 68 2.42

Worldpay currently has a consensus target price of $82.93, suggesting a potential upside of 6.21%. As a group, “Business Support Services” companies have a potential upside of 8.06%. Given Worldpay’s rivals higher probable upside, analysts plainly believe Worldpay has less favorable growth aspects than its rivals.

Profitability

This table compares Worldpay and its rivals’ 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 -19.13% -19.80% 1.32%

Institutional and Insider Ownership

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

Summary

Worldpay beats its rivals on 8 of the 13 factors compared.

Worldpay Company Profile

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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