FleetCor Technologies (NYSE: FLT) and WEX (NYSE:WXS) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Institutional & Insider Ownership

97.6% of FleetCor Technologies shares are held by institutional investors. 4.3% of FleetCor Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares FleetCor Technologies and WEX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FleetCor Technologies 23.28% 20.87% 6.85%
WEX 5.48% 4.41% 1.07%

Earnings and Valuation

This table compares FleetCor Technologies and WEX’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FleetCor Technologies $2.06 billion 7.06 $1.11 billion $5.06 31.30
WEX N/A N/A N/A N/A N/A

FleetCor Technologies has higher revenue and earnings than WEX.

Analyst Ratings

This is a summary of current recommendations and price targets for FleetCor Technologies and WEX, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FleetCor Technologies 0 0 12 1 3.08
WEX 0 0 0 0 N/A

FleetCor Technologies currently has a consensus target price of $181.45, suggesting a potential upside of 14.56%. Given FleetCor Technologies’ higher possible upside, equities research analysts plainly believe FleetCor Technologies is more favorable than WEX.

Summary

FleetCor Technologies beats WEX on 9 of the 9 factors compared between the two stocks.

About FleetCor Technologies

FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.

About WEX

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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