Global Payments (NYSE:GPN) and RB Global (NYSE:RBA) Critical Review

Global Payments (NYSE:GPN) and RB Global (NYSE:RBA) are both large-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Dividends

Global Payments pays an annual dividend of $1.00 per share and has a dividend yield of 1.5%. RB Global pays an annual dividend of $1.24 per share and has a dividend yield of 1.2%. Global Payments pays out -49.0% of its earnings in the form of a dividend. RB Global pays out 57.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RB Global has increased its dividend for 20 consecutive years. Global Payments is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and target prices for Global Payments and RB Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Payments	3	16	4	0	2.04
RB Global	0	1	6	0	2.86

Global Payments presently has a consensus target price of $84.52, indicating a potential upside of 25.38%. RB Global has a consensus target price of $126.43, indicating a potential upside of 24.08%. Given Global Payments’ higher possible upside, equities analysts plainly believe Global Payments is more favorable than RB Global.

Earnings and Valuation

This table compares Global Payments and RB Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Payments	$7.71 billion	2.39	$1.40 billion	($2.04)	-33.05
RB Global	$4.59 billion	4.13	$423.10 million	$2.15	47.39

Global Payments has higher revenue and earnings than RB Global. Global Payments is trading at a lower price-to-earnings ratio than RB Global, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

89.8% of Global Payments shares are held by institutional investors. Comparatively, 95.4% of RB Global shares are held by institutional investors. 0.6% of Global Payments shares are held by insiders. Comparatively, 0.6% of RB Global shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Payments	-7.99%	13.11%	5.79%
RB Global	9.55%	12.33%	5.58%

Volatility & Risk

Global Payments has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, RB Global has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

About Global Payments

Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, account payables, and electronic payment alternatives solutions for businesses and governments. It 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. The company was founded in 1967 and is headquartered in Atlanta, Georgia.

About RB Global

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.