Net 1 UEPS Technologies (UEPS) vs. Western Union Company (The) (WU) Critical Review
Net 1 UEPS Technologies (NASDAQ: UEPS) and Western Union Company (The) (NYSE:WU) are both industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Western Union Company (The) pays an annual dividend of $0.70 per share and has a dividend yield of 3.4%. Net 1 UEPS Technologies does not pay a dividend. Western Union Company (The) pays out 179.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Net 1 UEPS Technologies has increased its dividend for 2 consecutive years.
Volatility & Risk
Net 1 UEPS Technologies has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Western Union Company (The) has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.
This is a breakdown of recent ratings for Net 1 UEPS Technologies and Western Union Company (The), as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Net 1 UEPS Technologies||0||0||0||0||N/A|
|Western Union Company (The)||3||5||1||0||1.78|
Western Union Company (The) has a consensus target price of $20.38, indicating a potential upside of 0.32%. Given Western Union Company (The)’s higher possible upside, analysts plainly believe Western Union Company (The) is more favorable than Net 1 UEPS Technologies.
Insider & Institutional Ownership
57.0% of Net 1 UEPS Technologies shares are owned by institutional investors. 3.2% of Net 1 UEPS Technologies shares are owned by company insiders. Comparatively, 1.1% of Western Union Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Net 1 UEPS Technologies and Western Union Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Net 1 UEPS Technologies||11.96%||14.06%||7.24%|
|Western Union Company (The)||3.50%||92.41%||9.04%|
Valuation & Earnings
This table compares Net 1 UEPS Technologies and Western Union Company (The)’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Net 1 UEPS Technologies||$610.07 million||0.87||$148.02 million||$1.35||7.01|
|Western Union Company (The)||$5.43 billion||1.74||$1.35 billion||$0.39||52.08|
Western Union Company (The) has higher revenue and earnings than Net 1 UEPS Technologies. Net 1 UEPS Technologies is trading at a lower price-to-earnings ratio than Western Union Company (The), indicating that it is currently the more affordable of the two stocks.
Western Union Company (The) beats Net 1 UEPS Technologies on 10 of the 16 factors compared between the two stocks.
Net 1 UEPS Technologies Company Profile
Net 1 UEPS Technologies, Inc. is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.
Western Union Company (The) Company Profile
The Western Union Company (Western Union) is a provider of money movement and payment services. The Company operates through three segments: Consumer-to-Consumer, Consumer-to-Business and Business Solutions. The Company’s Consumer-to-Consumer segment facilitates money transfers between two consumers, primarily through a network of third-party agents. The Company’s Consumer-to-Business segment provides options to make one-time or recurring payments from consumers to businesses and other organizations, including utilities, auto finance companies, mortgage servicers, financial service providers and government agencies. Its Consumer-to-Business payments services are available through a range of services that include Speedpay, Pago Facil and Western Union Payments. Western Union’s Business Solutions segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals.
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