First Data (NYSE:FDC) and Spindle (OTCMKTS:SPDL) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Insider and Institutional Ownership
56.3% of First Data shares are held by institutional investors. 5.6% of First Data shares are held by company insiders. Comparatively, 14.6% of Spindle shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
First Data has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500. Comparatively, Spindle has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for First Data and Spindle, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
First Data presently has a consensus price target of $27.04, indicating a potential upside of 52.61%. Given First Data’s higher possible upside, equities analysts plainly believe First Data is more favorable than Spindle.
This table compares First Data and Spindle’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares First Data and Spindle’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Data||$12.05 billion||1.38||$1.47 billion||$1.28||13.84|
First Data has higher revenue and earnings than Spindle.
First Data beats Spindle on 9 of the 11 factors compared between the two stocks.
About First Data
First Data Corporation provides electronic commerce solutions for merchants, financial institutions, and card issuers worldwide. It operates through three segments: Global Business Solutions (GBS), Global Financial Solutions (GFS), and Network & Security Solutions (NSS). The GBS segment offers retail point-of-sale merchant acquiring and e-commerce services; and mobile payment services, as well as its cloud-based Clover point-of-sale operating system, which includes a marketplace for proprietary and third-party business applications. The GFS segment provides technology solutions for bank and non-bank issuers comprising credit, retail private label, commercial card, and loan processing; licensed financial software systems, such as VisionPLUS processing application; and account services, including card personalization and embossing, customer communications, remittance processing, professional services, and customer servicing consisting of call center solutions and back office processing. The NSS segment offers a range of value-added solutions that include electronic funds transfer network solutions comprising debit card processing solutions; stored value network solutions; and gift, and security and fraud solutions. This segment also supports online and mobile banking, as well as its business supporting mobile wallets. The company was founded in 1989 and is headquartered in Atlanta, Georgia.
Spindle, Inc. provides merchant and consumer-facing commerce solutions for small and medium-sized businesses in the United States. It offers payment processing services to merchants using its Catalyst Gateway; and acts as an agent, independent contractor, or referral partner to broker merchants that it secures to other merchant processors for ongoing fees based on processing volume. The company is based in Mesa, Arizona.
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