Global Payments (NYSE:GPN – Get Rating) and Fair Isaac (NYSE:FICO – Get Rating) are both large-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Analyst Ratings
This is a breakdown of current ratings and price targets for Global Payments and Fair Isaac, as reported by MarketBeat.com.
Get Global Payments alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Global Payments | 0 | 5 | 22 | 0 | 2.81 |
| Fair Isaac | 0 | 1 | 3 | 0 | 2.75 |
Global Payments currently has a consensus target price of $172.46, suggesting a potential upside of 49.92%. Fair Isaac has a consensus target price of $546.40, suggesting a potential upside of 27.69%. Given Global Payments' stronger consensus rating and higher possible upside, equities analysts clearly believe Global Payments is more favorable than Fair Isaac.
Profitability
This table compares Global Payments and Fair Isaac's net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| Global Payments | 0.87% | 9.24% | 5.20% |
| Fair Isaac | 27.04% | -67.14% | 24.28% |
Volatility and Risk
Global Payments has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Fair Isaac has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
Valuation and Earnings
This table compares Global Payments and Fair Isaac's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Global Payments | $8.52 billion | 3.74 | $965.46 million | $0.18 | 639.15 |
| Fair Isaac | $1.32 billion | 8.21 | $392.08 million | $13.65 | 31.35 |
Global Payments has higher revenue and earnings than Fair Isaac. Fair Isaac is trading at a lower price-to-earnings ratio than Global Payments, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
85.6% of Global Payments shares are owned by institutional investors. Comparatively, 87.0% of Fair Isaac shares are owned by institutional investors. 1.2% of Global Payments shares are owned by company insiders. Comparatively, 3.3% of Fair Isaac shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
About Global Payments
(Get Rating)
Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through three segments: Merchant Solutions, Issuer Solutions, and Business and Consumer Solutions. The Merchant Solutions segment offers authorization services, settlement and funding services, customer support and help-desk functions, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and statements, and on-line reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added services, such as point-of-sale solutions, and analytic and engagement tools, as well as payroll and human capital management services. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments and ePayables solutions for businesses and governments. The Business and Consumer Solutions segment provides general-purpose reloadable prepaid debit and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers, and businesses under the Netspend brand. It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations. The company was founded in 1967 and is headquartered in Atlanta, Georgia.
About Fair Isaac
(Get Rating)
Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Scores and Software. The Software segment offers pre-configured decision management solution designed for various business problems or processes, such as marketing, account origination, customer management, customer engagement, fraud detection, financial crimes compliance, collection, and marketing, as well as associated professional services. This segment also provides FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to analytics to be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. Fair Isaac Corporation markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.
Receive News & Ratings for Global Payments Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Global Payments and related companies with MarketBeat.com's FREE daily email newsletter.