Worldpay Inc. (WP)’s Financial Results Comparing With First Data Corporation (NYSE:FDC)

Both Worldpay Inc. (NYSE:WP) and First Data Corporation (NYSE:FDC) compete on a level playing field in the Business Services industry. We will evaluate their performance with regards to analyst recommendations, profitability, institutional ownership, risk, dividends, earnings and valuation.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Worldpay Inc. 4.04B 9.14 146.80M 0.00 0.00
First Data Corporation 8.72B 2.75 1.07B 1.05 24.21

Demonstrates Worldpay Inc. and First Data Corporation earnings per share, top-line revenue and valuation.

Profitability

Table 2 demonstrates the net margins, return on assets and return on equity of Worldpay Inc. and First Data Corporation.

Net Margins Return on Equity Return on Assets
Worldpay Inc. 3.63% 0.1% 0%
First Data Corporation 12.27% 26.5% 2.3%

Risk and Volatility

A beta of 0.9 shows that Worldpay Inc. is 10.00% less volatile than Standard & Poor’s 500. First Data Corporation has a 2.28 beta and it is 128.00% more volatile than Standard & Poor’s 500.

Liquidity

The current Quick Ratio of Worldpay Inc. is 1 while its Current Ratio is 1. Meanwhile, First Data Corporation has a Current Ratio of 1 while its Quick Ratio is 1. is better positioned to pay off its short-term and long-term debts than .

Analyst Recommendations

In next table is shown Worldpay Inc. and First Data Corporation’s ratings and recommendations.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Worldpay Inc. 0 5 5 2.50
First Data Corporation 0 1 0 2.00

Worldpay Inc. has an average price target of $116.7, and a -1.82% downside potential. Meanwhile, First Data Corporation’s consensus price target is $26, while its potential upside is 2.20%. Based on the analysts belief we can conclude, First Data Corporation is looking more favorable than Worldpay Inc.

Institutional & Insider Ownership

Institutional investors held 97.2% of Worldpay Inc. shares and 95.1% of First Data Corporation shares. Worldpay Inc.’s share held by insiders are 0.6%. On the other hand, insiders held about 2.5% of First Data Corporation’s shares.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Worldpay Inc. 7.16% 14.9% 11.01% -0.09% 17.68% 25.5%
First Data Corporation 1.84% 3.12% 33.02% 1.8% 65.06% 50.33%

For the past year Worldpay Inc.’s stock price has smaller growth than First Data Corporation.

Summary

First Data Corporation beats Worldpay Inc. on 10 of the 12 factors.

Worldpay, Inc., through its subsidiary, Vantiv Holding, LLC, provides electronic payment processing services to merchants and financial institutions in the United States. It operates through two segments, Merchant Services and Financial Institution Services. The Merchant Services segment offers merchant acquiring and payment processing services, such as authorization and settlement, customer service, chargeback and retrieval processing, and interchange management to national merchants, and regional and small-to-mid sized businesses. This segment also provides value-added services, such as omni-channel acceptance, prepaid services, and gift card solutions; and security solutions, including point-to-point encryption and tokenization at the point of sale and for e-commerce transactions. The Financial Institution Services segment offers card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine driving, portfolio optimization, data analytics, and card program marketing, as well as network gateway and switching services. It also provides statement production, and collections and inbound/outbound call centers for credit transactions, as well as other services, which include credit card portfolio analytics, program strategy and support, fraud and security management, and chargeback and dispute services. This segment serves financial institutions comprising regional banks, community banks, credit unions, and regional personal identification number networks. It markets its services through various distribution channels, including national, regional, and mid-market sales teams, as well as through third-party reseller clients and telesales operation. The company was formerly known as Vantiv, Inc. and changed its name to Worldpay, Inc. in January 2018. Worldpay, Inc. was incorporated in 2009 and is headquartered in Cincinnati, Ohio.

First Data Corporation provides electronic commerce solutions for merchants, financial institutions, and card issuers worldwide. It operates through three segments: Global Business Solutions, Global Financial Solutions, and Network & Security Solutions. The Global Business Solutions segment offers retail point-of-sale merchant acquiring and e-commerce services; and mobile payment services and Webstore-in-a-box solutions, as well as its cloud-based Clover point-of-sale operating system, which includes a marketplace for proprietary and third-party business applications. The Global Financial Solutions segment provides credit solutions for bank and non-bank issuers, such as credit and retail private-label card processing solutions; and licensed financial software systems, such as VisionPLUS bank processing application and lending solutions. This segment also offers a suite of related services comprising card personalization and embossing, statement printing, client service, and remittance processing services to financial institutions. The Network & Security Solutions segment offers a range of value-added solutions that include electronic funds transfer network solutions, such as debit card processing solutions; stored value network solutions; and gift solutions, and security and fraud solutions. This segment also supports online and mobile banking, and its business supporting mobile wallets. The company was founded in 1989 and is headquartered in Atlanta, Georgia.

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