Contrasting Paypal (NASDAQ:PYPL) and FleetCor Technologies (NASDAQ:FLT)

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Paypal (NASDAQ:PYPL) and FleetCor Technologies (NYSE:FLT) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Profitability

This table compares Paypal and FleetCor Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paypal 14.89% 16.73% 5.61%
FleetCor Technologies 35.29% 26.37% 8.16%

Earnings and Valuation

This table compares Paypal and FleetCor Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paypal $15.45 billion 7.71 $2.06 billion $1.79 56.66
FleetCor Technologies $2.43 billion 10.44 $811.48 million $9.93 29.55

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Paypal and FleetCor Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paypal 0 7 23 0 2.77
FleetCor Technologies 0 9 9 0 2.50

Paypal currently has a consensus target price of $123.35, indicating a potential upside of 21.62%. FleetCor Technologies has a consensus target price of $284.76, indicating a potential downside of 2.96%. Given Paypal’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Paypal is more favorable than FleetCor Technologies.

Volatility & Risk

Paypal has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, FleetCor Technologies has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Insider & Institutional Ownership

81.2% of Paypal shares are held by institutional investors. Comparatively, 93.9% of FleetCor Technologies shares are held by institutional investors. 0.2% of Paypal shares are held by company insiders. Comparatively, 5.7% of FleetCor Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

FleetCor Technologies beats Paypal on 8 of the 14 factors compared between the two stocks.

About Paypal

PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and iZettle products. The company's Payments Platform allows consumers to send payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. It also offers gateway services that enable merchants to accept payments online with credit or debit cards. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.

About FleetCor Technologies

FleetCor Technologies, Inc. provides commercial payment solutions in North America, Latin America, Europe, and Australasia. The company offers fuel payment solutions to businesses and government entities that operate vehicle fleets, as well as to oil and leasing companies, and fuel marketers. Its fuel payment products are in the form of plastic cards, electronic RFID tags, and paper vouchers to purchase fuel, oil, vehicle maintenance supplies and services, and building supplies. The company also provides lodging payment solutions to businesses that have employees who travel overnight for work purposes. In addition, it offers electronic toll and parking payments products to businesses and consumers in the form of RFID tags affixed to vehicles' windshields; and prepaid paper vouchers as a means of payment on toll roads. Further, the company provides corporate payments solutions with vertical-specific applications, which enable its customers to manage and control electronic payments across their enterprise, optimize corporate spending, and offer innovative services that enhance employee efficiency and customer loyalty. Its primary corporate payments products include virtual cards, purchasing cards, travel and entertainment cards, payroll cards, and cross-border payment facilitation. Additionally, it offers gift card product management and processing services, such as card design, production and packaging, delivery and fulfillment, card and account management, transaction processing, promotion development and management, Website design and hosting, program analytics, and card distribution channel management. The company also provides vehicle maintenance, employee benefit payment, and long haul transportation-related services. The company markets its products and services through field sales, telesales, direct marketing, point-of-sale marketing, and the Internet. FleetCor Technologies, Inc. was founded in 1986 and is headquartered in Peachtree Corners, Georgia.

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