Global Payments (GPN) Competitors

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

Which has more volatility & risk, PAYX or GPN?

Paychex has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Global Payments has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Do analysts recommend PAYX or GPN?

Paychex currently has a consensus target price of $132.23, indicating a potential downside of 9.22%. Global Payments has a consensus target price of $135.71, indicating a potential upside of 24.97%. 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)	11 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.85
Global Payments	1 Sell rating(s)	12 Hold rating(s)	13 Buy rating(s)	0 Strong Buy rating(s)	2.46

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 0.9%. 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. Global Payments pays out 18.8% of its earnings in the form of a dividend. Paychex has increased its dividend for 14 consecutive years. Paychex is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do institutionals and insiders hold more shares of 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 company insiders. Comparatively, 1.0% of Global Payments shares are held by company 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.

Does the media favor PAYX or GPN?

In the previous week, Global Payments had 1 more articles in the media than Paychex. MarketBeat recorded 23 mentions for Global Payments and 22 mentions for Paychex. Paychex's average media sentiment score of 1.30 beat Global Payments' score of 0.51 indicating that Paychex is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Paychex	19 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Global Payments	9 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher 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	$5.28B	9.94	$1.69B	$4.75	30.67
Global Payments	$10.02B	2.76	$986.23M	$5.31	20.45

Is PAYX or GPN more profitable?

Paychex has a net margin of 32.02% compared to Global Payments' net margin of 13.61%. 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	13.61%	11.94%	5.45%

Does the MarketBeat Community favor PAYX or GPN?

Global Payments received 752 more outperform votes than Paychex when rated by MarketBeat users. Likewise, 70.78% of users gave Global Payments an outperform vote while only 41.63% of users gave Paychex an outperform vote.

Company	Underperform	Outperform
Paychex	Outperform Votes 343 41.63%	Underperform Votes 481 58.37%
Global Payments	Outperform Votes 1095 70.78%	Underperform Votes 452 29.22%

Summary

Paychex and Global Payments tied by winning 10 of the 20 factors compared between the two stocks.