Head-To-Head Analysis: WageWorks (WAGE) vs. Vantiv (VNTV)

WageWorks (NYSE: WAGE) and Vantiv (NYSE:VNTV) are both mid-cap business services 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 WageWorks and Vantiv, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WageWorks 0 1 4 0 2.80
Vantiv 0 9 17 0 2.65

WageWorks currently has a consensus price target of $80.30, suggesting a potential upside of 26.26%. Vantiv has a consensus price target of $75.43, suggesting a potential upside of 6.23%. Given WageWorks’ stronger consensus rating and higher probable upside, equities analysts clearly believe WageWorks is more favorable than Vantiv.

Volatility & Risk

WageWorks has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Vantiv has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

80.2% of Vantiv shares are held by institutional investors. 3.5% of WageWorks shares are held by insiders. Comparatively, 1.3% of Vantiv 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 WageWorks and Vantiv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WageWorks 9.60% 9.52% 3.30%
Vantiv 5.58% 33.54% 8.00%

Earnings & Valuation

This table compares WageWorks and Vantiv’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WageWorks $434.87 million 5.81 $81.87 million $1.09 58.35
Vantiv $3.80 billion 3.01 $880.01 million $1.29 55.05

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

Summary

Vantiv beats WageWorks on 8 of the 14 factors compared between the two stocks.

About WageWorks

WageWorks, Inc. is engaged in administering Consumer-Directed Benefits (CDBs). The Company administers CBDs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA) and other employee benefits. Its CDB programs assist employees and their families in saving money by using pre-tax dollars to pay for certain of their healthcare, dependent care and commuter expenses. Employers financially benefit from its programs through reduced payroll taxes. It provides operational support services to its clients and its cross-functional teams, including customer support and claims processing. It administers HSAs for employers that allow employee participants to invest funds to be used for qualified healthcare expenses.

About Vantiv

Vantiv, Inc. is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services that utilize the Company’s Jeanie personal identification number (PIN) debit payment network.

Receive News & Ratings for WageWorks Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WageWorks Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply