Cardtronics (CATM) and Booking (BKNG) Critical Survey

Cardtronics (NASDAQ:CATM) and Booking (NASDAQ:BKNG) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cardtronics and Booking, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardtronics 1 2 2 0 2.20
Booking 0 12 14 0 2.54

Cardtronics presently has a consensus price target of $26.33, suggesting a potential upside of 2.90%. Booking has a consensus price target of $2,140.86, suggesting a potential upside of 19.73%. Given Booking’s stronger consensus rating and higher probable upside, analysts clearly believe Booking is more favorable than Cardtronics.

Earnings & Valuation

This table compares Cardtronics and Booking’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardtronics $1.51 billion 0.78 -$145.35 million $2.77 9.24
Booking $12.68 billion 6.69 $2.34 billion $77.03 23.21

Booking has higher revenue and earnings than Cardtronics. Cardtronics is trading at a lower price-to-earnings ratio than Booking, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cardtronics and Booking’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardtronics -11.00% 24.21% 5.09%
Booking 20.07% 24.74% 11.02%

Risk and Volatility

Cardtronics has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Booking has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Institutional and Insider Ownership

92.1% of Booking shares are held by institutional investors. 0.6% of Cardtronics shares are held by insiders. Comparatively, 0.2% of Booking shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Booking beats Cardtronics on 13 of the 14 factors compared between the two stocks.

About Cardtronics

Cardtronics plc provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. The company offers cash dispensing and bank balance inquiries; and financial related services to cardholders, as well as ATM management and ATM equipment-related services to large retail merchants, smaller retailers, and operators of facilities, such as shopping malls, airports, and train stations. It also provides transaction processing, cash and cash delivery management, supply, and telecommunications, as well as routine and technical maintenance services for ATMs; and owns and operates electronic funds transfer transaction processing platforms that offer transaction processing services to its network of ATMS, as well as other ATMs under managed services arrangements. In addition, the company provides processing services for issuers of debit cards; and owns and operates Allpoint network, a surcharge-free ATM network, which offers surcharge-free ATM access to participating banks, credit unions, and stored-value debit card issuers. As of December 31, 2017, it provided services to approximately 230,000 ATMs in North America, Europe, Africa, Australia, and New Zealand. The company was founded in 1989 and is headquartered in Houston, Texas.

About Booking

Booking Holdings Inc, formerly The Priceline Group Inc., is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

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