Worldpay (NYSE: WP) and WNS (NYSE:WNS) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.
This is a breakdown of current ratings for Worldpay and WNS, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Worldpay presently has a consensus price target of $85.93, suggesting a potential downside of 0.75%. WNS has a consensus price target of $49.00, suggesting a potential downside of 9.41%. Given Worldpay’s higher possible upside, equities research analysts clearly believe Worldpay is more favorable than WNS.
Institutional and Insider Ownership
86.3% of WNS shares are held by institutional investors. 1.1% of Worldpay shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Worldpay and WNS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Worldpay has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, WNS has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.
Valuation & Earnings
This table compares Worldpay and WNS’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Worldpay||$4.03 billion||3.82||$130.11 million||$3.10||27.93|
|WNS||$758.00 million||3.58||$86.43 million||$1.81||29.88|
Worldpay has higher revenue and earnings than WNS. Worldpay is trading at a lower price-to-earnings ratio than WNS, indicating that it is currently the more affordable of the two stocks.
Worldpay beats WNS on 8 of the 15 factors compared between the two stocks.
Worldpay Company Profile
Worldpay, Inc., through its subsidiary, Vantiv Holding, LLC, provides electronic payment processing services to merchants and financial institutions in the United States. It operates through two segments, Merchant Services and Financial Institution Services. The Merchant Services segment offers merchant acquiring and payment processing services, such as authorization and settlement, customer service, chargeback and retrieval processing, and interchange management to national merchants, and regional and small-to-mid sized businesses. This segment also provides value-added services, such as omni-channel acceptance, prepaid services, and gift card solutions; and security solutions, including point-to-point encryption and tokenization at the point of sale and for e-commerce transactions. The Financial Institution Services segment offers card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine driving, portfolio optimization, data analytics, and card program marketing, as well as network gateway and switching services. It also provides statement production, and collections and inbound/outbound call centers for credit transactions, as well as other services, which include credit card portfolio analytics, program strategy and support, fraud and security management, and chargeback and dispute services. This segment serves financial institutions comprising regional banks, community banks, credit unions, and regional personal identification number networks. It markets its services through various distribution channels, including national, regional, and mid-market sales teams, as well as through third-party reseller clients and telesales operation. The company was formerly known as Vantiv, Inc. and changed its name to Worldpay, Inc. in January 2018. Worldpay, Inc. was incorporated in 2009 and is headquartered in Cincinnati, Ohio.
WNS Company Profile
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.
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