Contrasting Vectrus (VEC) & WageWorks (WAGE)
Vectrus (NYSE: VEC) and WageWorks (NYSE:WAGE) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
This table compares Vectrus and WageWorks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Vectrus and WageWorks’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vectrus||$1.19 billion||0.30||$23.65 million||$1.81||17.79|
|WageWorks||$364.71 million||6.97||$20.20 million||$1.17||54.83|
Vectrus has higher revenue and earnings than WageWorks. Vectrus is trading at a lower price-to-earnings ratio than WageWorks, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Vectrus has a beta of 2.18, indicating that its stock price is 118% more volatile than the S&P 500. Comparatively, WageWorks has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
Institutional and Insider Ownership
86.6% of Vectrus shares are owned by institutional investors. 3.9% of Vectrus shares are owned by insiders. Comparatively, 3.5% of WageWorks shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Vectrus and WageWorks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vectrus presently has a consensus price target of $37.00, suggesting a potential upside of 14.91%. WageWorks has a consensus price target of $83.00, suggesting a potential upside of 29.38%. Given WageWorks’ stronger consensus rating and higher probable upside, analysts plainly believe WageWorks is more favorable than Vectrus.
Vectrus beats WageWorks on 8 of the 14 factors compared between the two stocks.
Vectrus Company Profile
Vectrus, Inc. is a provider of services to the United States Government across the world. The Company offers services, including infrastructure asset management, logistics and supply chain management, and information technology and network communication. Its infrastructure asset management services support the United States Army, Air Force and Navy, and include infrastructure services, security, warehouse management and distribution, ammunition management, civil engineering, air base maintenance and operations, communications, emergency services, transportation, and life support activities at various global military installations. Its logistics and supply chain management services support and maintain the vehicle and equipment stocks of the United States Army and Marine Corps. Its information technology and network communication services consist of sustainment of communications systems, network security, systems installation and life cycle management of information technology systems.
WageWorks Company Profile
WageWorks, Inc. is engaged in administering Consumer-Directed Benefits (CDBs). The Company administers CBDs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA) and other employee benefits. Its CDB programs assist employees and their families in saving money by using pre-tax dollars to pay for certain of their healthcare, dependent care and commuter expenses. Employers financially benefit from its programs through reduced payroll taxes. It provides operational support services to its clients and its cross-functional teams, including customer support and claims processing. It administers HSAs for employers that allow employee participants to invest funds to be used for qualified healthcare expenses.
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