WEX (NYSE: WXS) is one of 30 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it contrast to its peers? We will compare WEX to related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares WEX and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
WEX N/A N/A 63.06
WEX Competitors $2.36 billion $197.44 million 979.56

WEX’s peers have higher revenue and earnings than WEX. WEX is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares WEX and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WEX 10.45% 8.53% 2.11%
WEX Competitors 10.65% 15.56% 5.47%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for WEX and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WEX 0 0 0 0 N/A
WEX Competitors 125 731 1074 12 2.50

As a group, “Transaction & Payment Services” companies have a potential upside of 6.16%. Given WEX’s peers higher possible upside, analysts clearly believe WEX has less favorable growth aspects than its peers.

Institutional and Insider Ownership

52.9% of shares of all “Transaction & Payment Services” companies are owned by institutional investors. 19.0% of shares of all “Transaction & Payment Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

WEX has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, WEX’s peers have a beta of 1.35, indicating that their average stock price is 35% more volatile than the S&P 500.

Summary

WEX peers beat WEX on 7 of the 8 factors compared.

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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