Head-To-Head Analysis: Total System Services (TSS) versus Its Peers

Total System Services (NYSE: TSS) is one of 186 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare Total System Services to similar businesses based on the strength of its risk, earnings, dividends, analyst recommendations, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Total System Services and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Total System Services 1 9 16 0 2.58
Total System Services Competitors 719 4574 7316 167 2.54

Total System Services presently has a consensus price target of $69.17, suggesting a potential downside of 6.25%. As a group, “IT Services & Consulting” companies have a potential upside of 5.55%. Given Total System Services’ competitors higher possible upside, analysts clearly believe Total System Services has less favorable growth aspects than its competitors.

Volatility and Risk

Total System Services has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Total System Services’ competitors have a beta of 1.15, indicating that their average share price is 15% more volatile than the S&P 500.

Institutional & Insider Ownership

75.2% of Total System Services shares are held by institutional investors. Comparatively, 62.8% of shares of all “IT Services & Consulting” companies are held by institutional investors. 2.6% of Total System Services shares are held by company insiders. Comparatively, 15.5% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Total System Services pays an annual dividend of $0.52 per share and has a dividend yield of 0.7%. Total System Services pays out 23.1% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.5% and pay out 36.8% of their earnings in the form of a dividend.

Profitability

This table compares Total System Services and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Total System Services 8.73% 26.25% 9.23%
Total System Services Competitors -15.36% -255.01% -3.12%

Valuation & Earnings

This table compares Total System Services and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Total System Services $4.17 billion $319.63 million 32.79
Total System Services Competitors $2.80 billion $293.63 million 325.19

Total System Services has higher revenue and earnings than its competitors. Total System Services is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Total System Services beats its competitors on 9 of the 15 factors compared.

Total System Services Company Profile

Total System Services, Inc. (TSYS) is a payment solutions provider that provides payment processing services, merchant services and related payment services to financial and non-financial institutions. The Company’s segments include North America Services, Merchant Services, NetSpend and International Services. In addition, it provides general purpose reloadable (GPR) prepaid and payroll cards, and alternative financial service solutions to the underbanked and other consumers. The Company’s Merchant Services segment provides third party processing services to merchant acquirers and Independent Sales Organizations (ISOs) and financial institutions. The Company’s NetSpend segment is engaged in the provision and sale of prepaid access devices, such as its GPR prepaid debit cards. The Company’s services and solutions include Issuing Services, Acquiring Services, Prepaid Solutions and Merchant Solutions.

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