Analyzing Heartland Payment Systems (HPY) and Its Competitors
Heartland Payment Systems (NYSE: HPY) is one of 28 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it contrast to its peers? We will compare Heartland Payment Systems to similar businesses based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, earnings, risk and valuation.
Insider and Institutional Ownership
55.9% of shares of all “Transaction & Payment Services” companies are held by institutional investors. 17.9% of shares of all “Transaction & Payment Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
Heartland Payment Systems has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Heartland Payment Systems’ peers have a beta of 1.31, suggesting that their average share price is 31% more volatile than the S&P 500.
Heartland Payment Systems pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Heartland Payment Systems pays out 17.6% of its earnings in the form of a dividend. As a group, “Transaction & Payment Services” companies pay a dividend yield of 1.4% and pay out 49.8% of their earnings in the form of a dividend. Heartland Payment Systems has increased its dividend for 6 consecutive years.
This is a summary of current ratings and target prices for Heartland Payment Systems and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Heartland Payment Systems||0||0||0||0||N/A|
|Heartland Payment Systems Competitors||125||732||1079||14||2.50|
As a group, “Transaction & Payment Services” companies have a potential upside of 5.58%. Given Heartland Payment Systems’ peers higher possible upside, analysts clearly believe Heartland Payment Systems has less favorable growth aspects than its peers.
Earnings & Valuation
This table compares Heartland Payment Systems and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Heartland Payment Systems||N/A||N/A||45.41|
|Heartland Payment Systems Competitors||$2.36 billion||$197.44 million||944.58|
Heartland Payment Systems’ peers have higher revenue and earnings than Heartland Payment Systems. Heartland Payment Systems 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.
This table compares Heartland Payment Systems and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Heartland Payment Systems||3.25%||27.90%||6.09%|
|Heartland Payment Systems Competitors||8.77%||12.40%||3.99%|
Heartland Payment Systems peers beat Heartland Payment Systems on 7 of the 10 factors compared.
About Heartland Payment Systems
Heartland Payment Systems, Inc. is a United States-based company that provides payment processing services to merchants. The Company’s electronic payment processing services facilitate the exchange of information and funds between merchants and cardholders’ financial institutions. Its segments include Payment Processing, which offers card payment processing and related services to its small and medium-sized enterprise merchants and Network Services merchants; Campus Solutions, which offers payment processing, integrated commerce solutions, loan services and open- and closed-loop payment solutions to institutions of higher education; Heartland School Solutions, which offers school nutrition and point of sale solutions and associated payment solutions to K-12 schools; Heartland Payroll Solutions, which provides payroll processing and related tax filing services, and Other, including integrated payments solutions for small ticket merchants, and loyalty and gift card marketing solutions.
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