FleetCor Technologies (NYSE: FLT) and Planet Payment (NASDAQ:PLPM) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Earnings & Valuation

This table compares FleetCor Technologies and Planet Payment’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FleetCor Technologies $2.06 billion 7.15 $1.11 billion $5.06 31.69
Planet Payment $52.79 million 3.99 $12.12 million $0.47 9.11

FleetCor Technologies has higher revenue and earnings than Planet Payment. Planet Payment is trading at a lower price-to-earnings ratio than FleetCor Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

97.6% of FleetCor Technologies shares are held by institutional investors. Comparatively, 50.6% of Planet Payment shares are held by institutional investors. 4.3% of FleetCor Technologies shares are held by company insiders. Comparatively, 20.2% of Planet Payment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares FleetCor Technologies and Planet Payment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FleetCor Technologies 23.28% 20.87% 6.85%
Planet Payment 48.14% 25.86% 16.37%

Analyst Recommendations

This is a summary of current ratings for FleetCor Technologies and Planet Payment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FleetCor Technologies 0 0 12 1 3.08
Planet Payment 0 0 2 0 3.00

FleetCor Technologies presently has a consensus target price of $181.45, suggesting a potential upside of 13.16%. Planet Payment has a consensus target price of $4.50, suggesting a potential upside of 5.14%. Given FleetCor Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe FleetCor Technologies is more favorable than Planet Payment.

Risk and Volatility

FleetCor Technologies has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Planet Payment has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Summary

FleetCor Technologies beats Planet Payment on 10 of the 15 factors compared between the two stocks.

About FleetCor Technologies

FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.

About Planet Payment

Planet Payment, Inc. is a provider of international payment and transaction processing and multi-currency processing services. The Company operates through two segments: multi-currency processing services and payment processing services. Its multi-currency processing services segment includes Pay In Your Currency, Multi-Currency Pricing and Dynamic Currency Conversion at automated teller machines, enable merchants to offer customized pricing in multiple currencies. Its payment processing services consist of end-to-end authorization, capture, clearing and settlement services to its customers along with localized language support and online access to reconciliation, reporting and analytics services. It provides its services to approximately 118,000 active merchant locations in over 20 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through its acquiring bank and processor customers.

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