Reviewing WEX (NYSE:WEX) & Its Peers

WEX (NYSE: WEX) is one of 32 public companies in the “Transaction & Payment Services” industry, but how does it weigh in compared to its rivals? We will compare WEX to related companies based on the strength of its earnings, analyst recommendations, profitability, valuation, dividends, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
WEX 7.09% 13.16% 3.29%
WEX Competitors 11.12% 15.00% 5.58%

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
WEX $1.02 billion $60.63 million 63.06
WEX Competitors $2.36 billion $197.44 million 906.42

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

Insider & Institutional Ownership

56.3% of shares of all “Transaction & Payment Services” companies are owned by institutional investors. 0.9% of WEX shares are owned by insiders. Comparatively, 17.9% of shares of all “Transaction & Payment Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for WEX and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WEX 0 3 11 0 2.79
WEX Competitors 125 730 1074 12 2.50

WEX presently has a consensus target price of $127.09, suggesting a potential upside of 1.28%. As a group, “Transaction & Payment Services” companies have a potential upside of 4.90%. Given WEX’s rivals higher possible upside, analysts plainly believe WEX has less favorable growth aspects than its rivals.

Volatility & Risk

WEX has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, WEX’s rivals have a beta of 1.33, suggesting that their average share price is 33% more volatile than the S&P 500.

Summary

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

WEX Company Profile

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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