18 Nov Dr. Jon Cartu Reports – Financial Analysis: Worldpay (NYSE:WP) versus InterCloud…
Worldpay (NYSE:WP) and InterCloud Systems (OTCMKTS:ICLD) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
This is a summary of current recommendations and price targets for Worldpay and InterCloud Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Worldpay currently has a consensus target price of $113.28, suggesting a potential upside of ∞. Given Worldpay’s higher possible upside, research analysts clearly believe Worldpay is more favorable than InterCloud Systems.
Insider and Institutional Ownership
90.8% of Worldpay shares are owned by institutional investors. 0.8% of Worldpay shares are owned by company insiders. Comparatively, 0.5% of InterCloud Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Worldpay has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, InterCloud Systems has a beta of 2.9, meaning that its share price is 190% more volatile than the S&P 500.
Earnings and Valuation
This table compares Worldpay and InterCloud Systems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Worldpay||$3.93 billion||0.00||$12.80 million||$3.68||N/A|
|InterCloud Systems||$34.52 million||0.01||-$44.33 million||N/A||N/A|
Worldpay has higher revenue and earnings than InterCloud Systems.
This table compares Worldpay and InterCloud Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Worldpay beats InterCloud Systems on 9 of the 10 factors compared between the two stocks.
Worldpay Company Profile
Worldpay, Inc., through its subsidiary, Worldpay Holding, LLC, provides electronic payment processing services in the United States, Europe, Asia, and Australasia. It operates in two segments, Technology Solutions, Merchant Solutions, and Issuer Solutions. The company offers merchant acquiring and payment processing services, such as authorization and settlement, customer service, chargeback and retrieval processing, and interchange management. It also provides value-added services, such data analytics and information management solutions, foreign currency management, and various funding options; and security solutions, including point-to-point encryption and tokenization at the point of sale and for e-commerce transactions. In addition, the company offers card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine driving, portfolio optimization, data analytics, and card program marketing, as well as network gateway and switching services. Further, it provides card and statement production, and collections and inbound/outbound call centers. The company serves merchants and financial institutions comprising regional banks, community banks, credit unions, and regional personal identification number networks through direct sales forces and referral partners. The company was formerly known as Vantiv, Inc. and changed its name to Worldpay, Inc. in January 2018. Worldpay, Inc. was incorporated in 2009 and is headquartered in Cincinnati, Ohio.
InterCloud Systems Company Profile
InterCloud Systems, Inc. provides networking orchestration and automation for software-defined networking (SDN) and network function virtualization environments to telecommunications service provider and corporate enterprise markets in the United States and internationally. It operates through two segments, Applications and Infrastructure and Professional Services. The Applications and Infrastructure segment provides applications and services, including SDN training, SDN software development and integration, and vertical network function validation; and cabling and other field installations, as well as designs, engineers, installs, and maintains various types of Wi-Fi and DAS networks to enterprise customers. The Professional Services segment engages in the design and deployment of SDN and software-defined wide area networking solutions for enterprise and carrier accounts. The company is based in Shrewsbury, New Jersey.
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