First Data Corporation (FDC) and CardConnect Corp (CCN) Critical Contrast

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

Valuation and Earnings

This table compares CardConnect Corp and First Data Corporation’s top-line revenue, earnings per share (EPS) 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
First Data Corporation $7.91 billion 2.08 $2.79 billion $0.59 30.19

First Data Corporation has higher revenue and earnings than CardConnect Corp.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CardConnect Corp and First Data Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CardConnect Corp 0 2 4 0 2.67
First Data Corporation 0 8 19 0 2.70

CardConnect Corp presently has a consensus price target of $16.00, suggesting a potential upside of 6.31%. First Data Corporation has a consensus price target of $18.66, suggesting a potential upside of 4.77%. Given CardConnect Corp’s higher probable upside, equities research analysts clearly believe CardConnect Corp is more favorable than First Data Corporation.

Profitability

This table compares CardConnect Corp and First Data Corporation’s 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%
First Data Corporation 4.66% 26.25% 3.05%

Institutional & Insider Ownership

31.6% of CardConnect Corp shares are owned by institutional investors. Comparatively, 37.5% of First Data Corporation shares are owned by institutional investors. 48.3% of CardConnect Corp shares are owned by company insiders. Comparatively, 6.3% of First Data Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

First Data Corporation beats CardConnect Corp on 7 of the 9 factors compared between the two stocks.

CardConnect Corp Company Profile

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.

First Data Corporation Company Profile

First Data Corporation is a provider of commerce-enabling technology and solutions for merchants, financial institutions and card issuers. The Company’s segments are Global Business Solutions (GBS), Global Financial Solutions (GFS), Network & Security Solutions (NSS), and Corporate. The GBS segment provides businesses of all sizes and types with a range of solutions at the point of sale, including merchant acquiring, e-commerce, mobile commerce, point-of-sale, and other business solutions. The GFS segment provides financial institutions, which include bank and non-bank issuers, such as retailers with card portfolios, with a range of solutions that enable them to offer financial products and solutions to their customers. The NSS segment provides a range of network solutions and security, risk and fraud management solutions to business and financial institution clients in its GBS and GFS segments, and to financial institutions, businesses, governments, processors and other clients.

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