Contrasting International Money Express (NASDAQ:IMXI) and WEX (NYSE:WEX)

WEX (NYSE:WEX) and International Money Express (NASDAQ:IMXI) 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, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for WEX and International Money Express, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEX	0	10	4	0	2.29
International Money Express	1	2	0	0	1.67

WEX currently has a consensus price target of $172.70, suggesting a potential upside of 16.29%. Given WEX’s stronger consensus rating and higher probable upside, equities analysts plainly believe WEX is more favorable than International Money Express.

Valuation and Earnings

This table compares WEX and International Money Express”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEX	$2.66 billion	1.94	$304.10 million	$8.91	16.67
International Money Express	$585.42 million	0.78	$32.67 million	$0.85	17.90

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

Insider & Institutional Ownership

97.5% of WEX shares are held by institutional investors. Comparatively, 86.7% of International Money Express shares are held by institutional investors. 1.4% of WEX shares are held by company insiders. Comparatively, 5.1% of International Money Express shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares WEX and International Money Express’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEX	11.50%	42.66%	3.33%
International Money Express	4.34%	23.26%	6.88%

Risk and Volatility

WEX has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, International Money Express has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Summary

WEX beats International Money Express on 11 of the 14 factors compared between the two stocks.

About WEX

WEX Inc. operates a commerce platform in the United States and internationally. The Mobility segment offers fleet vehicle payment solutions, transaction processing, and information management services; and provides account activation and account retention services; authorization and billing inquiries, and account maintenance services; account management; credit and collections services; merchant services; analytics solutions; and ancillary services and offerings. This segment markets its products directly and indirectly to businesses and government agencies with fleets of commercial vehicles; and indirectly through co-branded and private label relationships. The Corporate Payments segment provides payment solutions, including embedded payments; and accounts payable automation and spend management solutions. This segment also markets its products directly and indirectly to customers in travel, fintech, insurance, consumer bill pay, and media verticals. The Benefits Solutions segment offers software-as-a-service (SaaS) platform for consumer directed healthcare benefits and full-service benefit enrollment solutions. In addition, its SaaS platform includes embedded payment solutions and plan administration services for consumer-directed health benefits; COBRA accounts; and benefit enrollment and administration services. Further, it offers custodial and depository services for health savings accounts; and markets its products through third-party administrators, financial institutions, payroll providers, and health plans. The company was formerly known as Wright Express Corporation and changed its name to WEX Inc. in October 2012. WEX Inc. was founded in 1983 and is based in Portland, Maine.

About International Money Express

International Money Express, Inc., together with its subsidiaries, operates as an omnichannel money remittance services company in the United States, Latin America, Mexico, Central and South America, the Caribbean, Africa, and Asia. The company offers remittance services, which include a suite of ancillary financial processing solutions and payment services; and online payment options, pre-paid debit cards, and direct deposit payroll cards. It provides services through sending and paying agents and company-operated stores, as well as through online and Internet-enabled mobile devices. International Money Express, Inc. is headquartered in Miami, Florida.