Contrasting CardConnect Corp (CCN) & Net 1 UEPS Technologies (UEPS)

CardConnect Corp (NASDAQ: CCN) and Net 1 UEPS Technologies (NASDAQ:UEPS) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Insider and Institutional Ownership

31.6% of CardConnect Corp shares are held by institutional investors. Comparatively, 57.0% of Net 1 UEPS Technologies shares are held by institutional investors. 48.3% of CardConnect Corp shares are held by company insiders. Comparatively, 3.2% of Net 1 UEPS Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CardConnect Corp and Net 1 UEPS Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CardConnect Corp -1.00% N/A -3.75%
Net 1 UEPS Technologies 11.96% 14.06% 7.24%

Analyst Recommendations

This is a summary of recent recommendations and price targets for CardConnect Corp and Net 1 UEPS Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CardConnect Corp 0 2 4 0 2.67
Net 1 UEPS Technologies 0 0 0 0 N/A

CardConnect Corp presently has a consensus target price of $16.00, indicating a potential upside of 6.31%. Given CardConnect Corp’s higher probable upside, analysts clearly believe CardConnect Corp is more favorable than Net 1 UEPS Technologies.

Earnings and Valuation

This table compares CardConnect Corp and Net 1 UEPS Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CardConnect Corp N/A N/A N/A N/A N/A
Net 1 UEPS Technologies $610.07 million 0.87 $148.02 million $1.35 7.01

Net 1 UEPS Technologies has higher revenue and earnings than CardConnect Corp.

Summary

Net 1 UEPS Technologies beats CardConnect Corp on 5 of the 8 factors compared between the two stocks.

About CardConnect Corp

CardConnect Corp., formerly FinTech Acquisition Corp., is a holding company. The Company holds interests in CardConnect, LLC. The Company is a provider of payment processing solutions to merchants throughout the United States. The Company’s segments include Merchant Acquiring Services and Other. The Company’s platform allows it to provide payment solutions, customer support and tools for its distribution partners and merchants. Its solutions and services enable distribution partners to manage their business and for merchants to securely accept electronic payments. Its Merchant Acquiring services business involves providing end-to-end electronic payment processing services to merchants by facilitating the exchange of information and funds between them and cardholders’ financial institutions. It undertakes or facilitates through third parties, merchant set-up and training, transaction authorization, settlement, merchant funding, merchant assistance and support, and risk management.

About Net 1 UEPS Technologies

Net 1 UEPS Technologies, Inc. is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.

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