Financial Survey: WEX (WEX) and Qiwi (QIWI)

WEX (NYSE: WEX) and Qiwi (NASDAQ:QIWI) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Dividends

Qiwi pays an annual dividend of $0.55 per share and has a dividend yield of 3.2%. WEX does not pay a dividend. Qiwi pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for WEX and Qiwi, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WEX 0 3 11 0 2.79
Qiwi 0 2 2 0 2.50

WEX currently has a consensus price target of $138.00, indicating a potential downside of 11.73%. Qiwi has a consensus price target of $22.67, indicating a potential upside of 31.94%. Given Qiwi’s higher probable upside, analysts clearly believe Qiwi is more favorable than WEX.

Profitability

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

Net Margins Return on Equity Return on Assets
WEX 7.09% 13.16% 3.29%
Qiwi 13.47% 20.98% 11.46%

Earnings and Valuation

This table compares WEX and Qiwi’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WEX $1.02 billion 6.59 $60.63 million $1.99 78.56
Qiwi $295.00 million 2.61 $37.11 million $0.72 23.86

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

Risk & Volatility

WEX has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, Qiwi has a beta of 3.23, indicating that its stock price is 223% more volatile than the S&P 500.

Insider & Institutional Ownership

17.5% of Qiwi shares are owned by institutional investors. 9.0% of WEX shares are owned by company 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.

Summary

WEX beats Qiwi on 9 of the 16 factors compared between the two stocks.

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.

About Qiwi

QIWI plc is a provider of payment services in Russia and the Commonwealth of Independent States (CIS). The Company’s network enables payment services across physical, online and mobile channels. The Company operates in target markets and customer segments. As of December 31, 2016, the Company had deployed over 17.2 million virtual wallets, over 162,000 kiosks and terminals, and enabled merchants to accept over Russian rubles 70 billion cash and electronic payments monthly. The Company’s consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or virtual environments interchangeably. The Company provides integrated network of physical distribution points and virtual wallets, as well as payment channels and methods that enable consumers to deposit cash, convert it into a digital form and transfer the funds to a virtual wallet or pay for any merchant in its network.

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