Waton Financial (NASDAQ:WTF – Get Free Report) and Euronet Worldwide (NASDAQ:EEFT – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Profitability
This table compares Waton Financial and Euronet Worldwide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Waton Financial | N/A | N/A | N/A |
| Euronet Worldwide | 7.15% | 28.37% | 5.74% |
Risk and Volatility
Waton Financial has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Euronet Worldwide has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Waton Financial | 1 | 0 | 0 | 0 | 1.00 |
| Euronet Worldwide | 2 | 2 | 3 | 0 | 2.14 |
Euronet Worldwide has a consensus price target of $95.00, indicating a potential upside of 34.07%. Given Euronet Worldwide’s stronger consensus rating and higher possible upside, analysts clearly believe Euronet Worldwide is more favorable than Waton Financial.
Valuation and Earnings
This table compares Waton Financial and Euronet Worldwide”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Waton Financial | $7.45 million | 19.80 | -$11.97 million | N/A | N/A |
| Euronet Worldwide | $4.24 billion | 0.64 | $309.50 million | $6.93 | 10.23 |
Euronet Worldwide has higher revenue and earnings than Waton Financial.
Institutional and Insider Ownership
91.6% of Euronet Worldwide shares are held by institutional investors. 12.2% of Euronet Worldwide shares are held by 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
Euronet Worldwide beats Waton Financial on 10 of the 12 factors compared between the two stocks.
About Waton Financial
Waton Financial Ltd. is a holding company, which engages in the provision of securities brokerage and financial technology services. It is also involved in software licensing and related support services including the licensing of trading platform app, upgrades and enhancements, maintenance, and other related services to financial institutions. The company was founded on June 25, 2010 and is headquartered in Hong Kong.
About Euronet Worldwide
Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. It operates through three segments: Electronic Fund Transfer Processing, epay, and Money Transfer. The Electronic Fund Transfer Processing segment provides electronic payment solutions, including automated teller machine (ATM) cash withdrawal and deposit services, ATM network participation, outsourced ATM and point-of-sale (POS) management solutions, credit and debit and prepaid card outsourcing, card issuing, and merchant acquiring services. It also offers ATM and POS currency conversion, ATM surcharge, advertising, customer relationship management, mobile top-up, bill payment, fraud management, foreign remittance and cardless payout, banknote recycling, and tax-refund services; and integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems. The epay segment distributes and processes prepaid mobile airtime and other electronic payment products; and provides payment processing services for various prepaid products, cards, and services, as well as vouchers and physical gift fulfillment, and gift card distribution and processing services. This segment operates a network of approximately 821,000 POS terminals. The Money Transfer segment offers consumer-to-consumer and account-to-account money transfer, customers bill payment, check cashing, foreign currency exchange, mobile top-up, and cash management and foreign currency risk management services, as well as payment alternatives, such as money orders and prepaid debit cards. The company was formerly known as Euronet Services, Inc. and changed its name to Euronet Worldwide, Inc. in August 2001. Euronet Worldwide, Inc. was founded in 1994 and is headquartered in Leawood, Kansas.
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