Contrasting Global Payments (GPN) & LYFT (LYFT)

LYFT (NASDAQ:LYFT) and Global Payments (NYSE:GPN) are both large-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares LYFT and Global Payments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LYFT N/A N/A N/A
Global Payments 13.69% 19.83% 6.05%

Analyst Recommendations

This is a breakdown of current ratings and target prices for LYFT and Global Payments, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LYFT 2 7 14 0 2.52
Global Payments 1 5 18 0 2.71

LYFT presently has a consensus target price of $71.51, suggesting a potential upside of 30.43%. Global Payments has a consensus target price of $145.70, suggesting a potential downside of 4.73%. Given LYFT’s higher probable upside, equities analysts plainly believe LYFT is more favorable than Global Payments.

Insider and Institutional Ownership

31.1% of LYFT shares are owned by institutional investors. Comparatively, 97.5% of Global Payments shares are owned by institutional investors. 0.9% of Global Payments shares are owned 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.

Earnings and Valuation

This table compares LYFT and Global Payments’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LYFT $2.16 billion 7.39 -$911.34 million N/A N/A
Global Payments $3.37 billion 7.14 $452.05 million $5.19 29.47

Global Payments has higher revenue and earnings than LYFT.

Dividends

Global Payments pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. LYFT does not pay a dividend. Global Payments pays out 0.8% of its earnings in the form of a dividend.

Summary

Global Payments beats LYFT on 10 of the 13 factors compared between the two stocks.

About LYFT

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It provides Ridesharing Marketplace, which facilitates lead generation, billing and settlement, support, and related activities to enable drivers to provide their transportation services to riders. The company also offers a network of shared bikes and scooters in various cities to address the needs of riders for shorter routes; Express Drive program, a flexible car rentals program which connects drivers who need access to a car with third-party rental car companies; and concierge for organizations to manage the transportation needs of their customers and employees. In addition, it integrates third-party public transit data into the Lyft app to offer various enterprise programs, including monthly ride credits for daily commutes, supplementing public transit by providing rides for the first and last leg of commute trips, late-night rides home, and shuttle replacement rides. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

About Global Payments

Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments. The company operates in three segments: North America, Europe, and Asia-Pacific. It 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 online reporting services. The company 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 analytic and engagement tools, as well as payroll services. In addition, it offers credit and debit card transaction processing services for various international card brands, including American Express, Discover Card, JCB, MasterCard, UnionPay International, and Visa; and non-traditional payment methods, as well as certain domestic debit networks, such as Interac in Canada. Further, the company provides e-commerce and omnichannel solutions; and gaming solutions to licensed gaming operators. It serves customers in various industries comprising education, restaurant, event management, hospitality, retail, healthcare, convenience stores and petroleum, professional services, automotive, and lodging. The company 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 in 32 countries of North America, Europe, the Asia-Pacific region, and Brazil. Global Payments Inc. was founded in 1967 and is headquartered in Atlanta, Georgia.

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