Nuvei vs Adyen Which Is a Smarter Choice?

Nuvei and Adyen are two major players in the fintech industry, both offering innovative payment solutions to businesses around the world. While Nuvei is a North American-based company that has seen rapid growth since its IPO in 2020, Adyen is a European-based company that has established itself as a leader in the global payment processing market. Investors are closely watching both stocks as they continue to expand their offerings and compete for market share in the fast-growing fintech sector.

Nuvei or Adyen?

When comparing Nuvei and Adyen, 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 Nuvei and Adyen.

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. Nuvei has a dividend yield of 1.18%, while Adyen has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nuvei reports a 5-year dividend growth of 0.00% year and a payout ratio of 236.55%. On the other hand, Adyen reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Nuvei P/E ratio at 202.47 and Adyen's P/E ratio at 56.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nuvei P/B ratio is 2.31 while Adyen's P/B ratio is 12.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nuvei has seen a 5-year revenue growth of 6.21%, while Adyen's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nuvei's ROE at 1.16% and Adyen's ROE at 24.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $33.98 for Nuvei and €1486.80 for Adyen. Over the past year, Nuvei's prices ranged from $20.03 to $34.00, with a yearly change of 69.75%. Adyen's prices fluctuated between €965.60 and €1591.20, with a yearly change of 64.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.