Head to Head Contrast: Worldpay (WP) & eBay (EBAY)

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Worldpay (NASDAQ: EBAY) and eBay (NASDAQ:EBAY) are both large-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Worldpay and eBay, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Worldpay 0 5 25 1 2.87
eBay 1 12 17 0 2.53

Worldpay presently has a consensus price target of $95.54, suggesting a potential downside of 0.31%. eBay has a consensus price target of $46.23, suggesting a potential upside of 36.02%. Given eBay’s higher probable upside, analysts clearly believe eBay is more favorable than Worldpay.

Institutional and Insider Ownership

89.2% of Worldpay shares are owned by institutional investors. Comparatively, 84.8% of eBay shares are owned by institutional investors. 1.1% of Worldpay shares are owned by company insiders. Comparatively, 6.8% of eBay shares are owned 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.

Volatility and Risk

Worldpay has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, eBay has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares Worldpay and eBay’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Worldpay -1.72% 14.55% 4.64%
eBay -10.05% 20.57% 6.98%

Valuation and Earnings

This table compares Worldpay and eBay’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Worldpay $4.03 billion 7.43 $130.11 million $3.10 30.91
eBay $9.57 billion 3.52 -$1.02 billion $1.63 20.85

Worldpay has higher earnings, but lower revenue than eBay. eBay is trading at a lower price-to-earnings ratio than Worldpay, indicating that it is currently the more affordable of the two stocks.

Summary

Worldpay beats eBay on 9 of the 15 factors compared between the two stocks.

Worldpay Company Profile

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.

eBay Company Profile

eBay Inc. operates commerce platforms that connect various buyers and sellers worldwide. Its platforms enable sellers to organize and offer their inventory for sale; and buyers to find and purchase it virtually. The company's Marketplace platforms include its online marketplace at ebay.com and the eBay mobile apps; and StubHub platforms comprise its online ticket platform at stubhub.com, and the StubHub mobile apps and online ticket platform that connect fans with their favorite sporting events, shows, and artists, as well as enables them to buy and sell tickets. Its Classifieds platforms include a collection of brands, such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen, and others, which offer online classifieds to enable people find whatever they are looking for in their local communities. The company's platforms enable users to find, buy, sell, and pay for items through various online, mobile, and offline channels that include retailers, distributors, liquidators, import and export companies, auctioneers, catalog and mail-order companies, classifieds, directories, search engines, commerce participants, shopping channels, and networks. eBay Inc. was founded in 1995 and is headquartered in San Jose, California.

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