Daiwa Securities Group (OTCMKTS:DSEEY) versus WEX (NYSE:WEX) Head-To-Head Contrast

Daiwa Securities Group (OTCMKTS:DSEEY) and WEX (NYSE:WEX) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Profitability

This table compares Daiwa Securities Group and WEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daiwa Securities Group	12.51%	9.31%	0.49%
WEX	14.05%	45.74%	3.66%

Risk and Volatility

Daiwa Securities Group has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, WEX has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Institutional and Insider Ownership

97.5% of WEX shares are owned by institutional investors. 1.4% of WEX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Daiwa Securities Group and WEX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daiwa Securities Group	0	1	0	0	2.00
WEX	0	8	5	1	2.50

WEX has a consensus target price of $191.10, indicating a potential upside of 4.89%. Given WEX’s stronger consensus rating and higher probable upside, analysts plainly believe WEX is more favorable than Daiwa Securities Group.

Valuation & Earnings

This table compares Daiwa Securities Group and WEX”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daiwa Securities Group	$9.75 billion	1.61	$1.16 billion	$0.93	11.97
WEX	$2.66 billion	2.25	$304.10 million	$11.62	15.68

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

Summary

WEX beats Daiwa Securities Group on 13 of the 15 factors compared between the two stocks.

About Daiwa Securities Group

Daiwa Securities Group Inc. is a Japan-based financial services holding company whose principal business is securities and investment services. Its offerings include brokerage and investment advice for individual and corporate clients, as well as services for institutional investors. The group’s businesses also include investment banking, such as securities underwriting and financial advisory services, along with asset management and investment activities. It serves clients in Japan and through operations in international markets.

About WEX

WEX Inc. is a financial technology company that provides payment processing and business management solutions. Founded in 1983 as Wright Express, the company adopted the WEX name in 2012 and is headquartered in Portland, Maine. WEX’s fleet business offers payment cards and related services for commercial and government fleets, including tools to manage fuel purchases, vehicle expenses and fleet operations. Its travel and corporate payments business provides solutions such as virtual cards and payment services for travel companies and other businesses.