Comparing WageWorks (WAGE) & Ituran Location and Control Ltd. (US) (ITRN)

WageWorks (NYSE: WAGE) and Ituran Location and Control Ltd. (US) (NASDAQ:ITRN) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Risk & Volatility

WageWorks has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Ituran Location and Control Ltd. (US) has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for WageWorks and Ituran Location and Control Ltd. (US), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WageWorks 0 1 4 0 2.80
Ituran Location and Control Ltd. (US) 0 2 0 0 2.00

WageWorks presently has a consensus target price of $83.00, suggesting a potential upside of 35.18%. Ituran Location and Control Ltd. (US) has a consensus target price of $36.00, suggesting a potential upside of 5.57%. Given WageWorks’ stronger consensus rating and higher probable upside, equities analysts clearly believe WageWorks is more favorable than Ituran Location and Control Ltd. (US).

Insider and Institutional Ownership

51.6% of Ituran Location and Control Ltd. (US) shares are held by institutional investors. 3.5% of WageWorks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares WageWorks and Ituran Location and Control Ltd. (US)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WageWorks 9.87% 9.60% 3.37%
Ituran Location and Control Ltd. (US) 18.99% 36.10% 22.09%

Earnings & Valuation

This table compares WageWorks and Ituran Location and Control Ltd. (US)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WageWorks $364.71 million 6.67 $20.20 million $1.17 52.48
Ituran Location and Control Ltd. (US) $199.57 million 3.58 $32.13 million $2.06 16.55

Ituran Location and Control Ltd. (US) has lower revenue, but higher earnings than WageWorks. Ituran Location and Control Ltd. (US) is trading at a lower price-to-earnings ratio than WageWorks, indicating that it is currently the more affordable of the two stocks.

Dividends

Ituran Location and Control Ltd. (US) pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. WageWorks does not pay a dividend. Ituran Location and Control Ltd. (US) pays out 46.6% of its earnings in the form of a dividend.

Summary

WageWorks beats Ituran Location and Control Ltd. (US) on 9 of the 16 factors compared between the two stocks.

About WageWorks

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.

About Ituran Location and Control Ltd. (US)

Ituran Location and Control Ltd. is a provider of location-based services, consisting of stolen vehicle recovery (SVR), fleet management services and other tracking services. The Company also provides wireless communication products used in connection with its location-based services and various other applications. Its operations consist of two segments: location-based services and wireless communications products. Its location-based services segment consists of its SVR and tracking services, fleet management and value-added services consisted of personal locater services and concierge services. Its wireless communications products segment consists of short and medium range two-way machine-to-machine wireless communications products that are used for various applications, including automatic vehicle location (AVL) and automatic vehicle identification. It primarily provides its services, as well as sells and leases its products in Israel, Brazil, Argentina and the United States.

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