WEX (WEX) and First Data (FDC) Head-To-Head Comparison

WEX (NYSE: WEX) and First Data (NYSE:FDC) are both mid-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Valuation & Earnings

This table compares WEX and First Data’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WEX $1.02 billion 5.32 $60.63 million $1.99 63.46
First Data $11.58 billion 1.30 $420.00 million $0.76 21.38

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for WEX and First Data, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WEX 0 3 11 0 2.79
First Data 0 7 23 0 2.77

WEX presently has a consensus price target of $127.09, suggesting a potential upside of 0.64%. First Data has a consensus price target of $19.66, suggesting a potential upside of 20.99%. Given First Data’s higher possible upside, analysts clearly believe First Data is more favorable than WEX.

Profitability

This table compares WEX and First Data’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WEX 7.09% 13.16% 3.29%
First Data 5.99% 26.60% 3.12%

Risk & Volatility

WEX has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500. Comparatively, First Data has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Insider and Institutional Ownership

49.1% of First Data shares are held by institutional investors. 9.0% of WEX shares are held by insiders. Comparatively, 6.3% of First Data shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

WEX beats First Data on 8 of the 14 factors compared between the two stocks.

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.

First Data Company Profile

First Data Corporation is a provider of commerce-enabling technology and solutions for merchants, financial institutions and card issuers. The Company’s segments are Global Business Solutions (GBS), Global Financial Solutions (GFS), Network & Security Solutions (NSS), and Corporate. The GBS segment provides businesses of all sizes and types with a range of solutions at the point of sale, including merchant acquiring, e-commerce, mobile commerce, point-of-sale, and other business solutions. The GFS segment provides financial institutions, which include bank and non-bank issuers, such as retailers with card portfolios, with a range of solutions that enable them to offer financial products and solutions to their customers. The NSS segment provides a range of network solutions and security, risk and fraud management solutions to business and financial institution clients in its GBS and GFS segments, and to financial institutions, businesses, governments, processors and other clients.

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