Planet Payment (NASDAQ:PLPM) and Net 1 UEPS Technologies (UEPS) Critical Comparison

Planet Payment (NASDAQ: PLPM) and Net 1 UEPS Technologies (NASDAQ:UEPS) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

53.6% of Planet Payment shares are held by institutional investors. Comparatively, 56.9% of Net 1 UEPS Technologies shares are held by institutional investors. 20.2% of Planet Payment shares are held by insiders. Comparatively, 6.3% of Net 1 UEPS Technologies shares are held by 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.

Earnings & Valuation

This table compares Planet Payment and Net 1 UEPS Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Planet Payment $52.79 million 3.44 $12.12 million $0.47 7.85
Net 1 UEPS Technologies $606.27 million 0.89 $156.03 million $1.63 5.81

Net 1 UEPS Technologies has higher revenue and earnings than Planet Payment. Net 1 UEPS Technologies is trading at a lower price-to-earnings ratio than Planet Payment, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Planet Payment and Net 1 UEPS Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Planet Payment 0 0 1 0 3.00
Net 1 UEPS Technologies 0 0 0 0 N/A

Profitability

This table compares Planet Payment and Net 1 UEPS Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Planet Payment 48.14% 25.86% 16.37%
Net 1 UEPS Technologies 14.19% 15.31% 7.86%

Volatility and Risk

Planet Payment has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Net 1 UEPS Technologies has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Summary

Planet Payment beats Net 1 UEPS Technologies on 7 of the 12 factors compared between the two stocks.

About Planet Payment

Planet Payment, Inc. is a provider of international payment and transaction processing and multi-currency processing services. The Company operates through two segments: multi-currency processing services and payment processing services. Its multi-currency processing services segment includes Pay In Your Currency, Multi-Currency Pricing and Dynamic Currency Conversion at automated teller machines, enable merchants to offer customized pricing in multiple currencies. Its payment processing services consist of end-to-end authorization, capture, clearing and settlement services to its customers along with localized language support and online access to reconciliation, reporting and analytics services. It provides its services to approximately 118,000 active merchant locations in over 20 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through its acquiring bank and processor customers.

About Net 1 UEPS Technologies

Net 1 UEPS Technologies, Inc. is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.

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