Global Payments (NYSE:GPN – Get Free Report) and UWM (NYSE:UWMC – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Global Payments and UWM, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Global Payments | 3 | 17 | 11 | 0 | 2.26 |
| UWM | 2 | 7 | 5 | 0 | 2.21 |
Global Payments presently has a consensus price target of $95.21, suggesting a potential upside of 15.83%. UWM has a consensus price target of $3.90, suggesting a potential upside of 256.16%. Given UWM’s higher possible upside, analysts clearly believe UWM is more favorable than Global Payments.
Insider and Institutional Ownership
Volatility & Risk
Global Payments has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, UWM has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.
Valuation & Earnings
This table compares Global Payments and UWM”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Global Payments | $7.71 billion | 2.82 | $1.40 billion | ($2.98) | -27.59 |
| UWM | $3.16 billion | 0.56 | $27.38 million | ($0.08) | -13.69 |
Global Payments has higher revenue and earnings than UWM. Global Payments is trading at a lower price-to-earnings ratio than UWM, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Global Payments and UWM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Global Payments | -9.16% | 13.80% | 5.73% |
| UWM | -1.04% | -6.20% | -0.50% |
Dividends
Global Payments pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. UWM pays an annual dividend of $0.40 per share and has a dividend yield of 36.5%. Global Payments pays out -33.6% of its earnings in the form of a dividend. UWM pays out -500.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. UWM is clearly the better dividend stock, given its higher yield and lower payout ratio.
About Global Payments
Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, account payables, and electronic payment alternatives solutions for businesses and governments. It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations. The company was founded in 1967 and is headquartered in Atlanta, Georgia.
About UWM
UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.
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