WNS (NYSE:WNS) and Cardtronics (NASDAQ:CATM) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.
Risk and Volatility
WNS has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Cardtronics has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.
This table compares WNS and Cardtronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares WNS and Cardtronics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WNS||$809.10 million||3.71||$105.43 million||$2.25||26.52|
|Cardtronics||$1.35 billion||1.01||$3.68 million||$1.88||15.91|
WNS has higher earnings, but lower revenue than Cardtronics. Cardtronics is trading at a lower price-to-earnings ratio than WNS, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
94.3% of WNS shares are held by institutional investors. 18.3% of Cardtronics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent ratings for WNS and Cardtronics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
WNS currently has a consensus price target of $68.63, suggesting a potential upside of 14.99%. Cardtronics has a consensus price target of $40.33, suggesting a potential upside of 34.80%. Given Cardtronics’ higher probable upside, analysts plainly believe Cardtronics is more favorable than WNS.
WNS beats Cardtronics on 11 of the 15 factors compared between the two stocks.
WNS (Holdings) Limited, a business process management company, together with its subsidiaries, provides data, voice, analytical, and business transformation services worldwide. It operates through two segments, WNS Global BPM and WNS Auto Claims BPM. The company offers industry-specific services to clients primarily in insurance; travel and leisure; diversified businesses, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunication; utilities; consulting and professional services; healthcare; banking and financial services; and shipping and logistics industries. It also provides shared services, such as customer interaction, finance and accounting, research and analytics, technology, legal, and human resources outsourcing services. In addition, the company offers transformation services designed to help its clients to modify their business processes to enhance productivity, as well as manage changes in the business environment and leverage business knowledge to increase market competitiveness. Further, it provides claims handling and repair management services for automobile repairs through a network of third party repair centers; and a suite of accident management services, such as credit hire and credit repair. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.
Cardtronics plc provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. The company offers cash dispensing and balance inquiries; and financial related services to cardholders, as well as ATM management and ATM equipment-related services to large retail merchants, smaller retailers, financial institutions, and operators of facilities, such as shopping malls, airports, and train stations. It also provides transaction processing, cash and cash delivery management, supply, and telecommunications, as well as routine and technical maintenance services for ATMs; and owns and operates electronic funds transfer transaction processing platforms that offer transaction processing services to its network of ATMS, as well as other ATMs under managed services arrangements. In addition, the company provides processing services for issuers of debit cards; and owns and operates Allpoint network, a surcharge-free ATM network, which offers surcharge-free ATM access to participating banks, credit unions, and stored-value debit card issuers. As of December 31, 2018, it provided services to approximately 227,000 ATMs in North America, Europe, Africa, Australia, and New Zealand. The company was founded in 1989 and is based in Houston, Texas.
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