Contrasting Cass Information Systems (NASDAQ:CASS) & Worldpay (WP)

Cass Information Systems (NASDAQ: CASS) and Worldpay (NYSE:WP) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Dividends

Cass Information Systems pays an annual dividend of $1.04 per share and has a dividend yield of 1.6%. Worldpay does not pay a dividend. Cass Information Systems has raised its dividend for 13 consecutive years.



Earnings & Valuation

This table compares Cass Information Systems and Worldpay’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cass Information Systems $135.30 million 6.07 $25.01 million N/A N/A
Worldpay $4.03 billion 3.72 $130.11 million $3.10 27.20

Worldpay has higher revenue and earnings than Cass Information Systems.

Insider & Institutional Ownership

50.6% of Cass Information Systems shares are owned by institutional investors. 4.9% of Cass Information Systems shares are owned by company insiders. Comparatively, 1.1% of Worldpay shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Cass Information Systems and Worldpay’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cass Information Systems 19.28% 12.81% 1.79%
Worldpay 0.09% 20.14% 5.30%

Risk & Volatility

Cass Information Systems has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Worldpay has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cass Information Systems and Worldpay, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cass Information Systems 0 0 0 0 N/A
Worldpay 0 5 26 1 2.88

Worldpay has a consensus target price of $85.39, indicating a potential upside of 1.28%. Given Worldpay’s higher probable upside, analysts plainly believe Worldpay is more favorable than Cass Information Systems.

Summary

Cass Information Systems beats Worldpay on 8 of the 15 factors compared between the two stocks.

Cass Information Systems Company Profile

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. It operates through two segments, Information Services and Banking Services. The company's services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. It also processes and pays energy invoices, including electricity, gas, waste, and other facility related expenses; and provides telecommunications expense management solutions comprising bill processing, audit, and payment services for telephone, data line, wireless, and communication equipment expenses. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of commercial banking products and services, such as checking, savings, and time deposit accounts; commercial and commercial real estate loans; and other cash management services to privately owned businesses, and churches and church-related ministries. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and additional leased facilities in Fenton, Missouri, Santa Ana, California, and Colorado Springs, Colorado. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. Cass Information Systems, Inc. was founded in 1906 and is headquartered in St. Louis, Missouri.

Worldpay Company Profile

Worldpay, Inc., through its subsidiary, Vantiv Holding, LLC, provides electronic payment processing services to merchants and financial institutions in the United States. It operates through two segments, Merchant Services and Financial Institution Services. The Merchant Services segment offers merchant acquiring and payment processing services, such as authorization and settlement, customer service, chargeback and retrieval processing, and interchange management to national merchants, and regional and small-to-mid sized businesses. This segment also provides value-added services, such as omni-channel acceptance, prepaid services, and gift card solutions; and security solutions, including point-to-point encryption and tokenization at the point of sale and for e-commerce transactions. The Financial Institution Services segment offers card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine driving, portfolio optimization, data analytics, and card program marketing, as well as network gateway and switching services. It also provides statement production, and collections and inbound/outbound call centers for credit transactions, as well as other services, which include credit card portfolio analytics, program strategy and support, fraud and security management, and chargeback and dispute services. This segment serves financial institutions comprising regional banks, community banks, credit unions, and regional personal identification number networks. It markets its services through various distribution channels, including national, regional, and mid-market sales teams, as well as through third-party reseller clients and telesales operation. The company was formerly known as Vantiv, Inc. and changed its name to Worldpay, Inc. in January 2018. Worldpay, Inc. was incorporated in 2009 and is headquartered in Cincinnati, Ohio.

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