Qiwi (NASDAQ: QIWI) and WEX (NYSE:WEX) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.
Volatility and Risk
Qiwi has a beta of 3.23, indicating that its stock price is 223% more volatile than the S&P 500. Comparatively, WEX has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500.
This table compares Qiwi and WEX’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Qiwi||$295.00 million||2.75||$37.11 million||$0.72||25.11|
|WEX||$1.02 billion||6.10||$60.63 million||$1.99||72.81|
WEX has higher revenue and earnings than Qiwi. Qiwi is trading at a lower price-to-earnings ratio than WEX, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
17.5% of Qiwi shares are owned by institutional investors. 9.0% of WEX shares 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.
This table compares Qiwi and WEX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Qiwi and WEX, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Qiwi currently has a consensus target price of $22.67, indicating a potential upside of 25.37%. WEX has a consensus target price of $135.83, indicating a potential downside of 6.26%. Given Qiwi’s higher probable upside, analysts plainly believe Qiwi is more favorable than WEX.
Qiwi pays an annual dividend of $0.55 per share and has a dividend yield of 3.0%. WEX does not pay a dividend. Qiwi pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
WEX beats Qiwi on 9 of the 16 factors compared between the two stocks.
QIWI plc is a provider of payment services in Russia and the Commonwealth of Independent States (CIS). The Company’s network enables payment services across physical, online and mobile channels. The Company operates in target markets and customer segments. As of December 31, 2016, the Company had deployed over 17.2 million virtual wallets, over 162,000 kiosks and terminals, and enabled merchants to accept over Russian rubles 70 billion cash and electronic payments monthly. The Company’s consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or virtual environments interchangeably. The Company provides integrated network of physical distribution points and virtual wallets, as well as payment channels and methods that enable consumers to deposit cash, convert it into a digital form and transfer the funds to a virtual wallet or pay for any merchant in its network.
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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