Planet Payment (NASDAQ: PLPM) and WEX (NYSE:WXS) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.
This is a summary of recent ratings and recommmendations for Planet Payment and WEX, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Planet Payment presently has a consensus target price of $4.50, indicating a potential upside of 0.45%. Given Planet Payment’s higher possible upside, research analysts plainly believe Planet Payment is more favorable than WEX.
Volatility & Risk
Planet Payment has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, WEX has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500.
Earnings and Valuation
This table compares Planet Payment and WEX’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Planet Payment||$54.34 million||4.12||$25.07 million||$0.47||9.53|
Planet Payment has higher revenue and earnings than WEX. Planet Payment is trading at a lower price-to-earnings ratio than WEX, indicating that it is currently the more affordable of the two stocks.
This table compares Planet Payment and WEX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
47.3% of Planet Payment shares are held by institutional investors. 20.2% of Planet Payment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Planet Payment beats WEX on 8 of the 10 factors compared between the two stocks.
About Planet Payment
Planet Payment, Inc. is a provider of international payment and transaction processing and multi-currency processing services. The Company operates through two segments: multi-currency processing services and payment processing services. Its multi-currency processing services segment includes Pay In Your Currency, Multi-Currency Pricing and Dynamic Currency Conversion at automated teller machines, enable merchants to offer customized pricing in multiple currencies. Its payment processing services consist of end-to-end authorization, capture, clearing and settlement services to its customers along with localized language support and online access to reconciliation, reporting and analytics services. It provides its services to approximately 118,000 active merchant locations in over 20 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through its acquiring bank and processor customers.
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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