Contrasting WEX (WXS) & Global Payments (GPN)
WEX (NYSE: WXS) and Global Payments (NYSE:GPN) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
Global Payments pays an annual dividend of $0.05 per share and has a dividend yield of 0.1%. WEX does not pay a dividend. Global Payments pays out 3.1% of its earnings in the form of a dividend.
This is a summary of recent recommendations and price targets for WEX and Global Payments, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Global Payments has a consensus price target of $94.26, indicating a potential upside of 0.98%. Given Global Payments’ higher probable upside, analysts clearly believe Global Payments is more favorable than WEX.
Valuation and Earnings
This table compares WEX and Global Payments’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Global Payments||$4.19 billion||3.40||$1.15 billion||$1.63||57.27|
Global Payments has higher revenue and earnings than WEX.
This table compares WEX and Global Payments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
98.6% of Global Payments shares are held by institutional investors. 0.9% of Global Payments shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Global Payments beats WEX on 9 of the 10 factors compared between the two stocks.
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.
Global Payments Company Profile
Global Payments Inc. is a provider of payment technology services. The Company provides payment and digital commerce solutions. The Company operates through three segments: North America, Europe and Asia-Pacific. The Company’s segments primarily provide payment solutions for credit cards, debit cards, electronic payments and check-related services. The Company’s segments target customers in various industries, including financial services, gaming, government, healthcare, professional services, restaurants, retail, universities, not-for-profit organizations and utilities. It provides services across a range of channels to merchants and partners in over 30 countries throughout North America, Europe, the Asia-Pacific region and Brazil. The Company performs a series of services, including authorization, electronic draft capture, file transfers to facilitate funds settlement and certain exception-based, back office support services, such as chargeback and retrieval resolution.
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