Qiwi (NASDAQ: QIWI) and Euronet Worldwide (NASDAQ:EEFT) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Profitability

This table compares Qiwi and Euronet Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Qiwi 13.47% 20.98% 11.46%
Euronet Worldwide 9.63% 22.46% 8.02%

Risk & Volatility

Qiwi has a beta of 3.23, suggesting that its stock price is 223% more volatile than the S&P 500. Comparatively, Euronet Worldwide has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Valuation & Earnings

This table compares Qiwi and Euronet Worldwide’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qiwi $295.00 million 2.14 $37.11 million $0.72 19.57
Euronet Worldwide $1.96 billion 2.52 $174.41 million $3.78 24.75

Euronet Worldwide has higher revenue and earnings than Qiwi. Qiwi is trading at a lower price-to-earnings ratio than Euronet Worldwide, indicating that it is currently the more affordable of the two stocks.

Dividends

Qiwi pays an annual dividend of $0.55 per share and has a dividend yield of 3.9%. Euronet Worldwide does not pay a dividend. Qiwi pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Qiwi and Euronet Worldwide, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qiwi 0 2 2 0 2.50
Euronet Worldwide 0 0 6 0 3.00

Qiwi currently has a consensus price target of $22.67, suggesting a potential upside of 60.87%. Euronet Worldwide has a consensus price target of $109.20, suggesting a potential upside of 16.74%. Given Qiwi’s higher possible upside, analysts plainly believe Qiwi is more favorable than Euronet Worldwide.

Institutional & Insider Ownership

17.6% of Qiwi shares are owned by institutional investors. Comparatively, 95.4% of Euronet Worldwide shares are owned by institutional investors. 7.7% of Euronet Worldwide shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Euronet Worldwide beats Qiwi on 11 of the 16 factors compared between the two stocks.

Qiwi Company Profile

QIWI plc is a provider of payment services in Russia and the Commonwealth of Independent States (CIS). The Company’s network enables payment services across physical, online and mobile channels. The Company operates in target markets and customer segments. As of December 31, 2016, the Company had deployed over 17.2 million virtual wallets, over 162,000 kiosks and terminals, and enabled merchants to accept over Russian rubles 70 billion cash and electronic payments monthly. The Company’s consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or virtual environments interchangeably. The Company provides integrated network of physical distribution points and virtual wallets, as well as payment channels and methods that enable consumers to deposit cash, convert it into a digital form and transfer the funds to a virtual wallet or pay for any merchant in its network.

Euronet Worldwide Company Profile

Euronet Worldwide, Inc. is an electronic payments provider. The Company offers payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers. Its product offerings include automated teller machine (ATM), point-of-sale (POS), card outsourcing, card issuing and merchant acquiring services, electronic distribution of prepaid mobile airtime and other electronic payment products. It operates in three segments: EFT Processing Segment provides electronic payment solutions consisting of ATM cash withdrawal and deposit services, outsourced ATM and POS management solutions, and credit and debit card outsourcing; epay Segment provides electronic distribution and processing of prepaid mobile airtime and other electronic payment products and collection services, and Money Transfer Segment provides global consumer-to-consumer money transfer services and global account-to-account money transfer services.

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