Heartland Payment Systems (HPY) & Net 1 UEPS Technologies (UEPS) Critical Contrast
Heartland Payment Systems (NYSE: HPY) and Net 1 UEPS Technologies (NASDAQ:UEPS) are both transaction & payment services companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.
Heartland Payment Systems pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Net 1 UEPS Technologies does not pay a dividend. Heartland Payment Systems pays out 17.6% of its earnings in the form of a dividend. Net 1 UEPS Technologies has raised its dividend for 6 consecutive years.
Valuation & Earnings
This table compares Heartland Payment Systems and Net 1 UEPS Technologies’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Heartland Payment Systems||N/A||N/A||N/A||$2.27||45.41|
|Net 1 UEPS Technologies||$610.07 million||1.01||$72.95 million||$1.21||8.96|
Net 1 UEPS Technologies has higher revenue and earnings than Heartland Payment Systems. Net 1 UEPS Technologies is trading at a lower price-to-earnings ratio than Heartland Payment Systems, indicating that it is currently the more affordable of the two stocks.
This table compares Heartland Payment Systems and Net 1 UEPS Technologies’ 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%|
|Net 1 UEPS Technologies||11.17%||13.06%||6.95%|
Insider & Institutional Ownership
56.1% of Net 1 UEPS Technologies shares are owned by institutional investors. 3.2% of Net 1 UEPS Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Heartland Payment Systems has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Net 1 UEPS Technologies has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
This is a breakdown of recent ratings for Heartland Payment Systems and Net 1 UEPS Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Heartland Payment Systems||0||0||0||0||N/A|
|Net 1 UEPS Technologies||0||0||1||0||3.00|
Net 1 UEPS Technologies beats Heartland Payment Systems on 9 of the 13 factors compared between the two stocks.
Heartland Payment Systems Company Profile
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.
Net 1 UEPS Technologies Company Profile
Net 1 UEPS Technologies, Inc. is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.
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