Global Payments (GPN) Competitors

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

Is GPN or PAYX a better dividend stock?

Global Payments pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Paychex pays an annual dividend of $3.92 per share and has a dividend yield of 2.6%. Global Payments pays out 16.2% of its earnings in the form of a dividend. Paychex pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Do institutionals and insiders have more ownership in GPN or PAYX?

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

Does the MarketBeat Community prefer GPN or PAYX?

Global Payments received 757 more outperform votes than Paychex when rated by MarketBeat users. Likewise, 70.88% of users gave Global Payments an outperform vote while only 41.58% of users gave Paychex an outperform vote.

Company	Underperform	Outperform
Global Payments	Outperform Votes 1100 70.88%	Underperform Votes 452 29.12%
Paychex	Outperform Votes 343 41.58%	Underperform Votes 482 58.42%

Does the media prefer GPN or PAYX?

In the previous week, Paychex had 26 more articles in the media than Global Payments. MarketBeat recorded 44 mentions for Paychex and 18 mentions for Global Payments. Global Payments' average media sentiment score of 1.52 beat Paychex's score of 1.34 indicating that Global Payments is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Global Payments	15 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Paychex	25 Very Positive mention(s)	3 Positive mention(s)	11 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive

Which has higher earnings and valuation, GPN or PAYX?

Paychex has lower revenue, but higher earnings 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
Global Payments	$10.11B	2.42	$1.57B	$6.18	16.10
Paychex	$5.37B	10.17	$1.69B	$4.75	31.93

Do analysts rate GPN or PAYX?

Global Payments currently has a consensus price target of $134.33, indicating a potential upside of 35.02%. Paychex has a consensus price target of $134.50, indicating a potential downside of 11.32%. Given Global Payments' stronger consensus rating and higher possible upside, research analysts plainly believe Global Payments is more favorable than Paychex.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Payments	1 Sell rating(s)	11 Hold rating(s)	14 Buy rating(s)	0 Strong Buy rating(s)	2.50
Paychex	2 Sell rating(s)	10 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.83

Which has more risk and volatility, GPN or PAYX?

Global Payments has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Paychex has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Is GPN or PAYX 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
Global Payments	15.54%	12.21%	5.64%
Paychex	32.02%	45.28%	15.61%

Summary

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