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

Dividends

QIWI PLC pays an annual dividend of $0.75 per share and has a dividend yield of 4.2%. WEX does not pay a dividend. QIWI PLC pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares QIWI PLC and WEX’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
QIWI PLC N/A N/A N/A $0.75 23.71
WEX N/A N/A N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for QIWI PLC and WEX, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QIWI PLC 0 2 2 0 2.50
WEX 0 0 0 0 N/A

QIWI PLC presently has a consensus target price of $22.67, indicating a potential upside of 27.48%. Given QIWI PLC’s higher probable upside, research analysts clearly believe QIWI PLC is more favorable than WEX.

Insider and Institutional Ownership

14.6% of QIWI PLC shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
QIWI PLC 14.88% 22.31% 12.32%
WEX 5.48% 4.41% 1.07%

Summary

QIWI PLC beats WEX on 7 of the 8 factors compared between the two stocks.

About QIWI PLC

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.

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.

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