Adyen vs Global Payments Which Offers More Value?

Adyen and Global Payments are two leading companies in the fintech sector, both offering a variety of payment processing solutions for businesses worldwide. Adyen, headquartered in the Netherlands, has seen tremendous growth in recent years due to its innovative payment platform and strong presence in the e-commerce industry. On the other hand, Global Payments, based in the United States, has also experienced steady growth and expansion through strategic acquisitions and partnerships. Both companies are well-positioned in the competitive payment processing market, making them attractive investment options for those looking to capitalize on the increasing global digital economy.

Adyen or Global Payments?

When comparing Adyen and Global Payments, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Adyen and Global Payments.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Adyen has a dividend yield of -%, while Global Payments has a dividend yield of 0.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Adyen reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Global Payments reports a 5-year dividend growth of 90.37% year and a payout ratio of 18.71%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Adyen P/E ratio at 56.03 and Global Payments's P/E ratio at 21.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Adyen P/B ratio is 12.94 while Global Payments's P/B ratio is 1.27.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Adyen has seen a 5-year revenue growth of 0.07%, while Global Payments's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Adyen's ROE at 24.55% and Global Payments's ROE at 6.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €1486.80 for Adyen and $114.08 for Global Payments. Over the past year, Adyen's prices ranged from €965.60 to €1591.20, with a yearly change of 64.79%. Global Payments's prices fluctuated between $91.60 and $141.78, with a yearly change of 54.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.