Analyzing Corpay (NYSE:CPAY) & Remitly Global (NASDAQ:RELY)

Remitly Global (NASDAQ:RELY) and Corpay (NYSE:CPAY) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Profitability

This table compares Remitly Global and Corpay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Remitly Global	1.36%	3.12%	2.05%
Corpay	24.37%	37.83%	7.26%

Analyst Ratings

This is a breakdown of current ratings for Remitly Global and Corpay, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Remitly Global	1	2	8	0	2.64
Corpay	0	5	9	0	2.64

Remitly Global currently has a consensus price target of $25.88, suggesting a potential upside of 79.31%. Corpay has a consensus price target of $375.43, suggesting a potential upside of 21.29%. Given Remitly Global’s higher probable upside, equities analysts clearly believe Remitly Global is more favorable than Corpay.

Institutional & Insider Ownership

74.3% of Remitly Global shares are held by institutional investors. Comparatively, 98.8% of Corpay shares are held by institutional investors. 8.1% of Remitly Global shares are held by company insiders. Comparatively, 5.0% of Corpay shares are held by company 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.

Valuation & Earnings

This table compares Remitly Global and Corpay”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Remitly Global	$1.26 billion	2.39	-$36.98 million	$0.09	160.33
Corpay	$3.97 billion	5.45	$1.00 billion	$14.73	21.01

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

Volatility and Risk

Remitly Global has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Corpay has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Summary

Corpay beats Remitly Global on 11 of the 14 factors compared between the two stocks.

About Remitly Global

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.

About Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.