Head-To-Head Analysis: Flywire (NASDAQ:FLYW) vs. Riskified (NYSE:RSKD)

Flywire (NASDAQ:FLYW) and Riskified (NYSE:RSKD) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Flywire and Riskified, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flywire	0	5	9	1	2.73
Riskified	1	3	3	0	2.29

Flywire currently has a consensus price target of $18.07, suggesting a potential upside of 17.19%. Riskified has a consensus price target of $5.96, suggesting a potential upside of 21.47%. Given Riskified’s higher probable upside, analysts clearly believe Riskified is more favorable than Flywire.

Volatility & Risk

Flywire has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Riskified has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Earnings and Valuation

This table compares Flywire and Riskified”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flywire	$623.03 million	3.05	$13.50 million	$0.23	67.04
Riskified	$344.64 million	2.11	-$27.57 million	($0.11)	-44.59

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

Insider and Institutional Ownership

95.9% of Flywire shares are held by institutional investors. Comparatively, 59.0% of Riskified shares are held by institutional investors. 5.0% of Flywire shares are held by insiders. Comparatively, 17.4% of Riskified shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Flywire and Riskified’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flywire	4.45%	3.78%	2.61%
Riskified	-5.17%	-3.91%	-2.89%

Summary

Flywire beats Riskified on 12 of the 15 factors compared between the two stocks.

About Flywire

Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company’s platform facilitates payment flows across multiple currencies, payment types, and payment options, as well as provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. The company was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.