Xoom Corp (XOOM) versus Euronet Worldwide (EEFT) Critical Review

Xoom Corp (NASDAQ: XOOM) and Euronet Worldwide (NASDAQ:EEFT) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Insider and Institutional Ownership

94.0% of Euronet Worldwide shares are owned by institutional investors. 7.7% of Euronet Worldwide shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Xoom Corp and Euronet Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xoom Corp	-37.74%	-25.16%	-21.82%
Euronet Worldwide	8.23%	22.32%	7.95%

Valuation & Earnings

This table compares Xoom Corp and Euronet Worldwide’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Xoom Corp	N/A	N/A	N/A	N/A	N/A
Euronet Worldwide	$2.05 billion	2.46	$345.38 million	$3.09	31.07

Euronet Worldwide has higher revenue and earnings than Xoom Corp.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Xoom Corp and Euronet Worldwide, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xoom Corp	0	0	0	0	N/A
Euronet Worldwide	0	0	5	0	3.00

Euronet Worldwide has a consensus price target of $99.75, suggesting a potential upside of 3.88%. Given Euronet Worldwide’s higher possible upside, analysts plainly believe Euronet Worldwide is more favorable than Xoom Corp.

Summary

Euronet Worldwide beats Xoom Corp on 8 of the 8 factors compared between the two stocks.

Xoom Corp Company Profile

Xoom Corporation (Xoom) is engaged in the digital consumer-to-consumer international money transfer business. The Company offers money transfer services from the United States to around 32 countries and its cross-border bill payment services from the United States to approximately five countries. Xoom’s solutions offer its customers a way to send money to, and pay bills for family and friends from any Internet-enabled location. The Company’s operating platform provides various solutions for transferring funds internationally, such as origination, funding, disbursement and transaction processing. The Company’s technology platform includes a customer interface which enables customers to send transactions from its Website, mobile Website or mobile application, using a computer, a tablet or a mobile phone; a risk management system; a transaction processing platform, and a disbursement integration platform. The Company provides its services under the XOOM brand.

Euronet Worldwide Company Profile

Euronet Worldwide, Inc. is an electronic payments provider. The Company offers payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers. Its product offerings include automated teller machine (ATM), point-of-sale (POS), card outsourcing, card issuing and merchant acquiring services, electronic distribution of prepaid mobile airtime and other electronic payment products. It operates in three segments: EFT Processing Segment provides electronic payment solutions consisting of ATM cash withdrawal and deposit services, outsourced ATM and POS management solutions, and credit and debit card outsourcing; epay Segment provides electronic distribution and processing of prepaid mobile airtime and other electronic payment products and collection services, and Money Transfer Segment provides global consumer-to-consumer money transfer services and global account-to-account money transfer services.