Contrasting Western Union Company (The) (WU) and WEX (WXS)
Western Union Company (The) (NYSE: WU) and WEX (NYSE:WXS) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
This is a breakdown of current ratings and target prices for Western Union Company (The) and WEX, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Union Company (The)||3||6||1||0||1.80|
Western Union Company (The) currently has a consensus target price of $20.56, indicating a potential upside of 8.19%. Given Western Union Company (The)’s higher probable upside, equities research analysts clearly believe Western Union Company (The) is more favorable than WEX.
Earnings & Valuation
This table compares Western Union Company (The) and WEX’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Western Union Company (The)||$5.43 billion||1.62||$1.35 billion||$0.39||48.72|
Western Union Company (The) has higher revenue and earnings than WEX.
Western Union Company (The) pays an annual dividend of $0.70 per share and has a dividend yield of 3.7%. WEX does not pay a dividend. Western Union Company (The) pays out 179.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. WEX has increased its dividend for 2 consecutive years.
This table compares Western Union Company (The) and WEX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Union Company (The)||3.50%||92.41%||9.04%|
Western Union Company (The) beats WEX on 6 of the 9 factors compared between the two stocks.
About Western Union Company (The)
The Western Union Company (Western Union) is a provider of money movement and payment services. The Company operates through three segments: Consumer-to-Consumer, Consumer-to-Business and Business Solutions. The Company’s Consumer-to-Consumer segment facilitates money transfers between two consumers, primarily through a network of third-party agents. The Company’s Consumer-to-Business segment provides options to make one-time or recurring payments from consumers to businesses and other organizations, including utilities, auto finance companies, mortgage servicers, financial service providers and government agencies. Its Consumer-to-Business payments services are available through a range of services that include Speedpay, Pago Facil and Western Union Payments. Western Union’s Business Solutions segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals.
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.
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