Head to Head Comparison: WEX (NYSE:WEX) versus The Competition

WEX (NYSE: WEX) is one of 31 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it weigh in compared to its competitors? We will compare WEX to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Risk and Volatility

WEX has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, WEX’s competitors have a beta of 1.30, meaning that their average share price is 30% more volatile than the S&P 500.

Insider & Institutional Ownership

56.5% of shares of all “Transaction & Payment Services” companies are owned by institutional investors. 0.9% of WEX shares are owned by company insiders. Comparatively, 17.9% of shares of all “Transaction & Payment Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares WEX and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
WEX $1.17 billion $377.31 million 72.78
WEX Competitors $1.59 billion $466.83 million 29.40

WEX’s competitors have higher revenue and earnings than WEX. WEX is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares WEX and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WEX 6.09% 13.03% 3.23%
WEX Competitors 10.43% 13.76% 5.42%

Analyst Recommendations

This is a summary of current recommendations for WEX and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WEX 0 2 11 0 2.85
WEX Competitors 121 711 1056 12 2.50

WEX presently has a consensus price target of $124.36, indicating a potential upside of 2.94%. As a group, “Transaction & Payment Services” companies have a potential upside of 10.35%. Given WEX’s competitors higher probable upside, analysts clearly believe WEX has less favorable growth aspects than its competitors.

Summary

WEX competitors beat WEX on 10 of the 13 factors compared.

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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