Head-To-Head Contrast: Planet Payment (PLPM) and Qiwi Plc (QIWI)

Planet Payment (NASDAQ: PLPM) and Qiwi Plc (NASDAQ:QIWI) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Profitability

This table compares Planet Payment and Qiwi Plc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Planet Payment 48.14% 25.86% 16.37%
Qiwi Plc 14.88% 22.31% 12.32%

Earnings and Valuation

This table compares Planet Payment and Qiwi Plc’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Planet Payment $52.79 million 4.06 $12.12 million $0.47 9.26
Qiwi Plc N/A N/A N/A $0.75 22.15

Planet Payment has higher revenue and earnings than Qiwi Plc. Planet Payment is trading at a lower price-to-earnings ratio than Qiwi Plc, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Planet Payment and Qiwi Plc, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Planet Payment 0 0 1 0 3.00
Qiwi Plc 0 2 2 0 2.50

Qiwi Plc has a consensus price target of $22.67, suggesting a potential upside of 36.46%. Given Qiwi Plc’s higher probable upside, analysts plainly believe Qiwi Plc is more favorable than Planet Payment.

Insider & Institutional Ownership

50.6% of Planet Payment shares are held by institutional investors. Comparatively, 14.6% of Qiwi Plc shares are held by institutional investors. 20.2% of Planet Payment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Qiwi Plc pays an annual dividend of $0.75 per share and has a dividend yield of 4.5%. Planet Payment does not pay a dividend. Qiwi Plc pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Planet Payment has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Qiwi Plc has a beta of 3.35, indicating that its share price is 235% more volatile than the S&P 500.

Summary

Planet Payment beats Qiwi Plc on 9 of the 14 factors compared between the two stocks.

About Planet Payment

Planet Payment, Inc. is a provider of international payment and transaction processing and multi-currency processing services. The Company operates through two segments: multi-currency processing services and payment processing services. Its multi-currency processing services segment includes Pay In Your Currency, Multi-Currency Pricing and Dynamic Currency Conversion at automated teller machines, enable merchants to offer customized pricing in multiple currencies. Its payment processing services consist of end-to-end authorization, capture, clearing and settlement services to its customers along with localized language support and online access to reconciliation, reporting and analytics services. It provides its services to approximately 118,000 active merchant locations in over 20 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through its acquiring bank and processor customers.

About Qiwi Plc

QIWI plc is a provider of payment services in Russia and the Commonwealth of Independent States (CIS). The Company’s network enables payment services across physical, online and mobile channels. The Company operates in target markets and customer segments. As of December 31, 2016, the Company had deployed over 17.2 million virtual wallets, over 162,000 kiosks and terminals, and enabled merchants to accept over Russian rubles 70 billion cash and electronic payments monthly. The Company’s consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or virtual environments interchangeably. The Company provides integrated network of physical distribution points and virtual wallets, as well as payment channels and methods that enable consumers to deposit cash, convert it into a digital form and transfer the funds to a virtual wallet or pay for any merchant in its network.

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