Corpay, Inc. (CPAY) vs Global Payments Inc. (GPN)

Corpay, Inc. and Global Payments Inc. are both Software Infrastructure companies. Corpay, Inc. is the larger, with a market value of $26.3B against $22.6B — 1.2× the size. Global Payments Inc. has negative trailing earnings, so its P/E is not meaningful; Corpay, Inc. trades at 23.9×. Global Payments Inc. grew revenue faster over the last twelve months: 43.1% against 20.4%. Corpay, Inc. has the higher net margin (22.6% vs −9.15%) and the lower return on invested capital (0.00% vs 2.01%). Across the 21 metrics below, Corpay, Inc. leads on 14 and Global Payments Inc. on 7.

Valuation

Metric CPAY GPN Software Infrastructure median
P/E 23.94 n/m 28.02
P/S 5.20 2.29 3.07
P/B 7.27 0.98 3.36
Price to free cash flow 15.93 28.38 17.12
EV/EBITDA 8.27 10.68 14.91
EV/Sales 4.39 3.95 3.03
Earnings yield 4.18% (3.43%) 0.13%
Free cash flow yield 6.28% 3.52% 1.15%

Profitability

Metric CPAY GPN Software Infrastructure median
Gross margin 100.00% 63.91% 61.23%
Operating margin 43.74% 12.84% 0.00%
Net margin 22.58% (9.15%) 0.00%
Free cash flow margin 32.63% 8.06% 1.67%
Return on equity 30.01% (3.97%) 0.59%
Return on assets 4.66% (1.67%) 0.00%
Return on invested capital 0.00% 2.01% 0.00%

Growth

Metric CPAY GPN Software Infrastructure median
Revenue growth (TTM) 20.36% 43.06% 13.41%
EPS growth (last fiscal year) 7.59% (6.01%) —
Revenue growth, 5-year CAGR 13.65% 0.75% 15.81%
Net income growth, 5-year CAGR 8.69% 19.09% 0.00%

Health

Metric CPAY GPN Software Infrastructure median
Debt to equity 1.70 0.94 0.06
Current ratio 0.97 0.82 1.55
Net debt to EBITDA (0.97) 3.98 0.08

Dividend

Metric CPAY GPN Software Infrastructure median
Dividend yield — 0.75% 1.53%
Payout ratio 0.00 0.34 0.00

Size

Metric CPAY GPN Software Infrastructure median
Market cap 26.28b 22.62b 835.96m

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