Comparing Moneygram International (MGI) and FleetCor Technologies (NYSE:FLT)

FleetCor Technologies (NYSE: FLT) and Moneygram International (NASDAQ:MGI) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for FleetCor Technologies and Moneygram International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FleetCor Technologies 0 0 13 1 3.07
Moneygram International 1 4 0 0 1.80

FleetCor Technologies presently has a consensus target price of $184.58, indicating a potential upside of 0.54%. Moneygram International has a consensus target price of $16.21, indicating a potential upside of 15.81%. Given Moneygram International’s higher possible upside, analysts plainly believe Moneygram International is more favorable than FleetCor Technologies.

Valuation and Earnings

This table compares FleetCor Technologies and Moneygram International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FleetCor Technologies $1.83 billion 8.98 $452.38 million $5.88 31.22
Moneygram International $1.63 billion 0.47 $16.30 million $0.45 31.11

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

Profitability

This table compares FleetCor Technologies and Moneygram International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FleetCor Technologies 25.66% 20.99% 6.78%
Moneygram International 1.86% -14.19% 1.20%

Institutional & Insider Ownership

95.8% of FleetCor Technologies shares are held by institutional investors. Comparatively, 91.1% of Moneygram International shares are held by institutional investors. 4.6% of FleetCor Technologies shares are held by company insiders. Comparatively, 49.5% of Moneygram International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

FleetCor Technologies has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Moneygram International has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500.

Summary

FleetCor Technologies beats Moneygram International on 12 of the 15 factors compared between the two stocks.

FleetCor Technologies Company Profile

FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.

Moneygram International Company Profile

MoneyGram International, Inc. (MoneyGram) is a global provider of money transfer services. The Company operates through two segments: Global Funds Transfer and Financial Paper Products. The Company offers its services under the MoneyGram brand. The Company’s Global Funds Transfer Segment provides money transfer services and bill payment services primarily to unbanked and underbanked consumers. The Financial Paper Products Segment provides money orders to consumers through its agents and financial institutions located across the United States and Puerto Rico. The Company’s offerings include money transfers, bill payment services, money order services and official check processing. The Company’s money transfer services enable its consumers to send and receive funds across the world through its global network of locations. The Company also offers Digital/Self-Service solutions, such as moneygram.com, mobile solutions, account deposit and kiosk-based services.

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