Comparing Block (NYSE:XYZ) & Diebold Nixdorf (NYSE:DBD)

Block (NYSE:XYZ) and Diebold Nixdorf (NYSE:DBD) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Earnings & Valuation

This table compares Block and Diebold Nixdorf”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Block	$24.12 billion	1.86	$2.90 billion	$4.67	15.79
Diebold Nixdorf	$3.67 billion	0.62	-$16.50 million	($0.34)	-181.44

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

Risk and Volatility

Block has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500. Comparatively, Diebold Nixdorf has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Block and Diebold Nixdorf, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Block	3	9	22	4	2.71
Diebold Nixdorf	1	0	2	1	2.75

Block presently has a consensus price target of $82.42, indicating a potential upside of 11.78%. Diebold Nixdorf has a consensus price target of $75.00, indicating a potential upside of 21.58%. Given Diebold Nixdorf’s stronger consensus rating and higher probable upside, analysts plainly believe Diebold Nixdorf is more favorable than Block.

Profitability

This table compares Block and Diebold Nixdorf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Block	12.32%	7.85%	4.49%
Diebold Nixdorf	-0.35%	7.92%	2.20%

Insider and Institutional Ownership

70.4% of Block shares are owned by institutional investors. Comparatively, 97.0% of Diebold Nixdorf shares are owned by institutional investors. 10.5% of Block shares are owned by company insiders. Comparatively, 0.3% of Diebold Nixdorf shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Block beats Diebold Nixdorf on 11 of the 15 factors compared between the two stocks.

About Block

Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions. The company also provides Square Point of Sale software; Cash App, which provides access to the financial system, allowing customers to electronically send, store, and spend money; Caviar, a food ordering platform for restaurants to offer food ordering, pickup and delivery, to their customers; and Square Capital that facilitates loans to sellers based on real-time payment and point-of-sale data. Square, Inc. was founded in 2009 and is headquartered in San Francisco, California.

About Diebold Nixdorf

Diebold Nixdorf, Incorporated engages in the automating, digitizing, and transforming the way people bank and shop worldwide. It operates through two segments, Banking and Retail. The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools, and kiosk technologies, as well as physical security solutions; and front-end applications for consumer connection points and back-end platforms that manage channel transactions, operations and integration, and facilitate omnichannel transactions, endpoint monitoring, remote asset management, customer marketing, merchandise management, and analytics. It also provides banking product-related services comprising proactive monitoring and rapid resolution of incidents through remote service capabilities or an on-site visit; first- and second-line maintenance, preventive maintenance, and on-demand services; managed and outsourcing services, such as business processes, solution management, upgrades, and transaction processing; and cash management services. In addition, the company offers DN Vynamic software suite to simplify and enhance the consumer experience; modular and integrated point of sale and self-checkout terminals; printers, scales, and mobile scanners; and banknote and coin processing systems, as well as ordering kiosks. Additionally, it provides retail customer's product-related services, such as on-demand and professional services; maintenance and availability services; implementation services; managed mobility services; monitoring and advanced analytics; and store life-cycle management services. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf, Incorporated in December 2016. Diebold Nixdorf, Incorporated was founded in 1859 and is headquartered in North Canton, Ohio.