Moneygram International (NASDAQ: MGI) and WEX (NYSE:WXS) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Moneygram International and WEX, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moneygram International 1 4 0 0 1.80
WEX 0 0 0 0 N/A

Moneygram International presently has a consensus price target of $16.21, suggesting a potential upside of 11.51%. Given Moneygram International’s higher possible upside, equities research analysts clearly believe Moneygram International is more favorable than WEX.

Risk and Volatility

Moneygram International has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, WEX has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500.

Earnings and Valuation

This table compares Moneygram International and WEX’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Moneygram International $1.63 billion 0.48 $16.30 million $0.45 32.31
WEX N/A N/A N/A $2.00 60.68

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

Profitability

This table compares Moneygram International and WEX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moneygram International 1.86% -14.04% 1.20%
WEX 5.48% 4.41% 1.07%

Institutional and Insider Ownership

93.8% of Moneygram International shares are owned by institutional investors. 49.5% of Moneygram International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Moneygram International beats WEX on 6 of the 9 factors compared between the two stocks.

About Moneygram International

MoneyGram International, Inc. (MoneyGram) is a global provider of money transfer services. The Company operates through two segments: Global Funds Transfer and Financial Paper Products. The Company offers its services under the MoneyGram brand. The Company’s Global Funds Transfer Segment provides money transfer services and bill payment services primarily to unbanked and underbanked consumers. The Financial Paper Products Segment provides money orders to consumers through its agents and financial institutions located across the United States and Puerto Rico. The Company’s offerings include money transfers, bill payment services, money order services and official check processing. The Company’s money transfer services enable its consumers to send and receive funds across the world through its global network of locations. The Company also offers Digital/Self-Service solutions, such as moneygram.com, mobile solutions, account deposit and kiosk-based services.

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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