Critical Comparison: USA Technologies (USAT) & NCR Corporation (NCR)

USA Technologies (NASDAQ: USAT) and NCR Corporation (NYSE:NCR) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Profitability

This table compares USA Technologies and NCR Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USA Technologies -1.78% -0.81% -0.56%
NCR Corporation 5.11% 84.72% 7.25%

Risk & Volatility

USA Technologies has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, NCR Corporation has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for USA Technologies and NCR Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USA Technologies 0 0 2 0 3.00
NCR Corporation 0 2 6 0 2.75

USA Technologies currently has a consensus price target of $7.25, indicating a potential upside of 11.54%. NCR Corporation has a consensus price target of $47.57, indicating a potential upside of 57.16%. Given NCR Corporation’s higher probable upside, analysts plainly believe NCR Corporation is more favorable than USA Technologies.

Valuation & Earnings

This table compares USA Technologies and NCR Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
USA Technologies $104.09 million 3.12 -$1.85 million ($0.05) -129.97
NCR Corporation $6.54 billion 0.56 $270.00 million $1.65 18.35

NCR Corporation has higher revenue and earnings than USA Technologies. USA Technologies is trading at a lower price-to-earnings ratio than NCR Corporation, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

36.8% of USA Technologies shares are held by institutional investors. Comparatively, 87.8% of NCR Corporation shares are held by institutional investors. 4.4% of USA Technologies shares are held by insiders. Comparatively, 1.0% of NCR Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

NCR Corporation beats USA Technologies on 10 of the 13 factors compared between the two stocks.

USA Technologies Company Profile

USA Technologies, Inc. provides technology-enabled solutions and value-added services that facilitate electronic payment transactions within the unattended point of sale (POS) market. The Company is a provider in the small ticket, beverage and food vending industry and is also engaged in offering solutions and services to other unattended market segments, such as amusement, commercial laundry, kiosk and others. It has designed and marketed systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services, which include the ability to remotely monitor, control and report on the results of distributed assets containing its electronic payment solutions. The Company derives its revenues from license and transaction fees resulting from connections to, as well as services provided by, its ePort Connect service.

NCR Corporation Company Profile

NCR Corporation is a provider of Omni-channel technology solutions that enable businesses connect, interact and transact with their customers. The Company operates through three segments: Software, Services and Hardware. It sells a portfolio of hardware, software and services that combine to provide businesses with solutions. Its portfolio of self-service and assisted-service solutions are designed to allow businesses in the financial services, retail, hospitality, travel and telecommunications and technology industries to deliver an experience to consumers across physical and digital commerce channels. Its offerings include automated teller machines, point of sale terminals and devices, self-service kiosks, Omni-channel platform software and other software applications, and a suite of consulting, implementation, maintenance and managed services. It provides solutions for a range of industries, such as financial services, hospitality, travel and telecommunications, and technology.

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