Analyzing Moneygram International (MGI) and FleetCor Technologies (FLT)

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

Risk & Volatility

Moneygram International has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, FleetCor Technologies has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Moneygram International and FleetCor Technologies, as provided by MarketBeat.

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

Moneygram International currently has a consensus price target of $16.21, indicating a potential upside of 9.77%. FleetCor Technologies has a consensus price target of $184.58, indicating a potential upside of 2.59%. Given Moneygram International’s higher possible upside, equities analysts clearly believe Moneygram International is more favorable than FleetCor Technologies.

Profitability

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

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

Earnings and Valuation

This table compares Moneygram International and FleetCor Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Moneygram International $1.63 billion 0.49 $16.30 million $0.45 32.82
FleetCor Technologies $1.83 billion 8.80 $452.38 million $5.88 30.60

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

Insider and Institutional Ownership

93.0% of Moneygram International shares are held by institutional investors. Comparatively, 99.4% of FleetCor Technologies shares are held by institutional investors. 49.5% of Moneygram International shares are held by insiders. Comparatively, 4.6% of FleetCor Technologies shares are held 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.

Summary

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

About Moneygram International

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.

About FleetCor Technologies

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.

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