Euronet Worldwide (NASDAQ: EEFT) and WEX (NYSE:WXS) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitabiliy and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for Euronet Worldwide and WEX, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Euronet Worldwide 0 0 3 0 3.00
WEX 0 0 0 0 N/A

Euronet Worldwide currently has a consensus price target of $97.50, indicating a potential upside of 10.72%. Given Euronet Worldwide’s higher probable upside, analysts clearly believe Euronet Worldwide is more favorable than WEX.

Insider & Institutional Ownership

94.5% of Euronet Worldwide shares are held by institutional investors. 7.7% of Euronet Worldwide shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Euronet Worldwide and WEX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Euronet Worldwide 8.70% 22.77% 8.14%
WEX 9.98% 7.76% 1.92%

Valuation & Earnings

This table compares Euronet Worldwide and WEX’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Euronet Worldwide $1.99 billion 2.32 $332.05 million $3.20 27.52
WEX N/A N/A N/A N/A N/A

Euronet Worldwide has higher revenue and earnings than WEX.

Summary

Euronet Worldwide beats WEX on 7 of the 8 factors compared between the two stocks.

Euronet Worldwide Company Profile

Euronet Worldwide, Inc. is an electronic payments provider. The Company offers payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers. Its product offerings include automated teller machine (ATM), point-of-sale (POS), card outsourcing, card issuing and merchant acquiring services, electronic distribution of prepaid mobile airtime and other electronic payment products. It operates in three segments: EFT Processing Segment provides electronic payment solutions consisting of ATM cash withdrawal and deposit services, outsourced ATM and POS management solutions, and credit and debit card outsourcing; epay Segment provides electronic distribution and processing of prepaid mobile airtime and other electronic payment products and collection services, and Money Transfer Segment provides global consumer-to-consumer money transfer services and global account-to-account money transfer services.

WEX Company Profile

WEX Inc. is a provider of corporate payment solutions. The Company operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. The Fleet Solutions segment provides customers with payment and transaction processing services designed for the needs of commercial and government fleets. The Travel and Corporate Solutions segment focuses on the complex payment environment of business-to-business payments, providing customers with payment processing solutions for their corporate payment and transaction monitoring needs. The Health and Employee Benefit Solutions segment provides healthcare payment products and software as a service consumer directed platforms, as well as payroll related benefits to customers in Brazil. The United States operations include the Company and its subsidiaries WEX Bank, WEX FleetOne, Electronic Funds Source LLC and WEX Health.

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