Head-To-Head Analysis: Global Payments (NYSE:GPN) and Corpay (NYSE:CPAY)

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Global Payments and Corpay, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Payments	0	14	6	2	2.45
Corpay	0	5	8	0	2.62

Global Payments presently has a consensus price target of $103.37, indicating a potential upside of 18.14%. Corpay has a consensus price target of $395.58, indicating a potential upside of 39.17%. Given Corpay’s stronger consensus rating and higher probable upside, analysts clearly believe Corpay is more favorable than Global Payments.

Institutional & Insider Ownership

89.8% of Global Payments shares are held by institutional investors. Comparatively, 98.8% of Corpay shares are held by institutional investors. 1.0% of Global Payments shares are held by insiders. Comparatively, 5.0% of Corpay 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.

Earnings and Valuation

This table compares Global Payments and Corpay”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Payments	$10.11 billion	2.10	$1.57 billion	$5.72	15.30
Corpay	$3.97 billion	5.05	$1.00 billion	$14.72	19.31

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

Risk & Volatility

Global Payments has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Corpay has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Payments	15.07%	12.47%	5.97%
Corpay	25.17%	39.13%	7.20%

Summary

Corpay beats Global Payments on 11 of the 15 factors compared between the two stocks.

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 Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.