Global Payments (GPN) Competitors

Paychex (NASDAQ:PAYX) and Global Payments (NYSE:GPN) are both large-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, community ranking, media sentiment, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Does the MarketBeat Community favor PAYX or GPN?

Global Payments received 762 more outperform votes than Paychex when rated by MarketBeat users. Likewise, 70.56% of users gave Global Payments an outperform vote while only 41.33% of users gave Paychex an outperform vote.

Company	Underperform	Outperform
Paychex	Outperform Votes 343 41.33%	Underperform Votes 487 58.67%
Global Payments	Outperform Votes 1105 70.56%	Underperform Votes 461 29.44%

Do institutionals and insiders believe in PAYX or GPN?

83.5% of Paychex shares are held by institutional investors. Comparatively, 89.8% of Global Payments shares are held by institutional investors. 11.4% of Paychex shares are held by insiders. Comparatively, 1.0% of Global Payments shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Do analysts rate PAYX or GPN?

Paychex presently has a consensus price target of $141.00, suggesting a potential downside of 3.83%. Global Payments has a consensus price target of $112.86, suggesting a potential upside of 47.28%. Given Global Payments' stronger consensus rating and higher probable upside, analysts clearly believe Global Payments is more favorable than Paychex.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paychex	2 Sell rating(s)	10 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.83
Global Payments	1 Sell rating(s)	18 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.29

Is PAYX or GPN a better dividend stock?

Paychex pays an annual dividend of $3.92 per share and has a dividend yield of 2.7%. Global Payments pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Paychex pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Payments pays out 16.2% of its earnings in the form of a dividend.

Is PAYX or GPN more profitable?

Paychex has a net margin of 32.02% compared to Global Payments' net margin of 15.54%. Paychex's return on equity of 45.28% beat Global Payments' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Paychex	32.02%	45.28%	15.61%
Global Payments	15.54%	12.21%	5.64%

Which has preferable valuation & earnings, PAYX or GPN?

Paychex has higher earnings, but lower revenue than Global Payments. Global Payments is trading at a lower price-to-earnings ratio than Paychex, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paychex	$5.44B	9.71	$1.69B	$4.80	30.54
Global Payments	$10.11B	1.86	$1.57B	$6.18	12.40

Which has more risk & volatility, PAYX or GPN?

Paychex has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Global Payments has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Does the media favor PAYX or GPN?

In the previous week, Global Payments had 15 more articles in the media than Paychex. MarketBeat recorded 36 mentions for Global Payments and 21 mentions for Paychex. Paychex's average media sentiment score of 1.26 beat Global Payments' score of 0.94 indicating that Paychex is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Paychex	16 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Global Payments	21 Very Positive mention(s)	2 Positive mention(s)	9 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Positive

Summary

Global Payments beats Paychex on 11 of the 20 factors compared between the two stocks.