Analyzing Cielo (OTCMKTS:CIOXY) & Viad (NYSE:VVI)

Cielo (OTCMKTS:CIOXY) and Viad (NYSE:VVI) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

0.0% of Cielo shares are held by institutional investors. Comparatively, 89.9% of Viad shares are held by institutional investors. 4.1% of Viad shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Cielo and Viad’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cielo	17.54%	12.28%	1.80%
Viad	2.68%	47.55%	5.49%

Analyst Recommendations

This is a summary of recent ratings and price targets for Cielo and Viad, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cielo	0	0	0	0	0.00
Viad	0	0	2	0	3.00

Viad has a consensus price target of $48.00, indicating a potential upside of 0.00%. Given Viad’s stronger consensus rating and higher possible upside, analysts clearly believe Viad is more favorable than Cielo.

Risk & Volatility

Cielo has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Viad has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500.

Earnings & Valuation

This table compares Cielo and Viad”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cielo	$2.12 billion	1.07	$418.05 million	$0.16	5.25
Viad	$1.24 billion	0.00	$16.02 million	$0.50	N/A

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

Summary

Viad beats Cielo on 10 of the 13 factors compared between the two stocks.

About Cielo

Cielo S.A., through its subsidiaries, provides payment services in Brazil and the United States. The company provides services related to credit and debit cards, and other payment methods, including signing up of merchants and service providers; rental, installation, and maintenance of point-of-sale terminals; and data capture and processing of electronic and manual transactions, as well as the issuance and management of payment accounts. It also offers services related to the processing means of payments that involve cards, maintenance services, and contacts with merchants for acceptance of credit and debit cards; development and licensing of computer software; electronic transactions processing; and technology services for collection and management of accounts payable and receivable using the Internet. The company was formerly known as Companhia Brasileira de Meios de Pagamento and changed its name to Cielo S.A. in December 2009. Cielo S.A. was founded in 1995 and is headquartered in Barueri, Brazil.

About Viad

Viad Corp provides hospitality, leisure activities, experiential marketing, and live events in the United States, Canada, Europe, the Middle East, and Africa. It operates in three segments: Pursuit, Spiro, and GES Exhibitions. The Pursuit segment offers recreational attractions, hotels and lodges, food and beverage, retail, sightseeing, and ground transportation services. This segment consists of Banff Jasper Collection, the Alaska Collection, the Glacier Park Collection, FlyOver, and Sky Lagoon. The Spiro segment operates as an experiential marketing agency that partners with brands around the world to manage and elevate their global experiential marketing activities. The GES Exhibition segment engages as an exhibition services company that partners with exhibition and conference organizers as a full-service provider of strategic and logistics solutions to manage the complexity of their shows. It serves event organizers and corporate brand marketers; and tour operators, tour wholesalers, destination management companies, and retail travel agencies. Viad Corp was founded in 1926 and is headquartered in Scottsdale, Arizona.