We believe the market is concerned about disruption to incumbent payment players like Global Payments. In our view, though, Global Payments continues to benefit from a strong competitive position and is successfully adapting to a changing industry. While Worldpay struggled under FIS' roof, we think that was due to underinvestment, an issue that we don't believe applies to Global Payments.
The merger with Total System Services bulked up Global Payments' acquiring business and strengthened its moat, given the importance of scale in the business.
The focus on small merchants increases Global Payments' macro sensitivity.
|
Metric
|
GPN
|
FIS
|
FI
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.96 | 15.00 | 19.55 |
Price/Book Value | 1.41 | 2.16 | 3.12 |
Price/Sales | 3.38 | 4.26 | 4.79 |
Price/Cash Flow | 11.20 | 9.36 | 14.74 |
|
Metric
|
GPN
|
FIS
|
FI
|
|---|---|---|---|
Quick Ratio | 0.39 | 0.14 | 0.14 |
Current Ratio | 0.99 | 0.75 | 1.04 |
Interest Coverage | 2.60 | 1.80 | 4.85 |
|
Metric
|
GPN
|
FIS
|
FI
|
|---|---|---|---|
Return on Assets (Normalized) | 5.66% | 13.19% | 5.63% |
Return on Equity (Normalized) | 12.18% | 33.35% | 16.02% |
Return on Invested Capital (Normalized) | 7.94% | 18.98% | 10.37% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
RELX
| RELX PLC ADR | Sbrjjbdb | Ccnq | $77.0 Bil | |
RLXXF
| RELX PLC | — | Mgrc | $76.5 Bil | |
TRI
| Thomson Reuters Corp | Hkkzwwvc | Cvwxqcv | $68.5 Bil | |
CTAS
| Cintas Corp | Ckwlyyh | Hzxqr | $67.5 Bil | |
CPRT
| Copart Inc | Bflfgdybq | Ldbd | $51.1 Bil | |
WOLTF
| Wolters Kluwer NV | — | Kphhg | $36.1 Bil | |
WTKWY
| Wolters Kluwer NV ADR | Svgyqfmgh | Hht | $35.6 Bil | |
RBA
| RB Global Inc | Tnfxstyf | Vffnxq | $13.4 Bil | |
RTO
| Rentokil Initial PLC ADR | Fvhppssyd | Xnprn | $13.1 Bil |
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