Critical Review: Cardtronics PLC (CATM) versus Vantiv (VNTV)

Cardtronics PLC (NASDAQ: CATM) and Vantiv (NYSE:VNTV) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Cardtronics PLC and Vantiv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardtronics PLC 4.83% 28.23% 7.72%
Vantiv 5.58% 33.54% 8.00%

Valuation & Earnings

This table compares Cardtronics PLC and Vantiv’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cardtronics PLC $1.38 billion 0.94 $304.90 million $1.45 19.50
Vantiv $3.80 billion 3.06 $880.01 million $1.29 55.88

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

Insider & Institutional Ownership

80.5% of Vantiv shares are held by institutional investors. 1.2% of Cardtronics PLC shares are held by insiders. Comparatively, 1.3% of Vantiv shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cardtronics PLC and Vantiv, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardtronics PLC 0 2 3 0 2.60
Vantiv 0 8 17 0 2.68

Cardtronics PLC presently has a consensus price target of $46.50, suggesting a potential upside of 64.43%. Vantiv has a consensus price target of $74.91, suggesting a potential upside of 3.92%. Given Cardtronics PLC’s higher possible upside, equities analysts plainly believe Cardtronics PLC is more favorable than Vantiv.

Volatility and Risk

Cardtronics PLC has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Vantiv has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Summary

Vantiv beats Cardtronics PLC on 11 of the 14 factors compared between the two stocks.

Cardtronics PLC Company Profile

Cardtronics plc, formerly Cardtronics, Inc., provides automated consumer financial services through its network of automated teller machines (ATMS) and multi-function financial services kiosks. The Company’s operations consists of its North America, Europe, and Corporate & Other segments. Its ATM operations in the United States, Canada, Mexico and Puerto Rico are included in its North America segment. Its ATM operations in the United Kingdom, Ireland, Germany, Poland, Spain and i-design are included in its Europe segment. Its transaction processing operations, which service its North American and European operations, along with external customers, and the Company’s corporate general and administrative functions comprise the Corporate & Other segment. As of December 31, 2016, it provided services to approximately 203,000 ATMs throughout the United States (including the United States territory of Puerto Rico), the United Kingdom, Ireland, Germany, Poland, Spain, Canada and Mexico.

Vantiv Company Profile

Vantiv, Inc. is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services that utilize the Company’s Jeanie personal identification number (PIN) debit payment network.

Receive News & Ratings for Cardtronics PLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cardtronics PLC and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply