Critical Survey: FleetCor Technologies (FLT) vs. Moneygram International (MGI)

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

Volatility & Risk

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

Insider & Institutional Ownership

95.0% of Moneygram International shares are owned by institutional investors. 4.6% of FleetCor Technologies shares are owned by company insiders. Comparatively, 49.5% of Moneygram International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares FleetCor Technologies and Moneygram International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
FleetCor Technologies $1.83 billion 8.87 $452.38 million $5.88 30.85
Moneygram International $1.63 billion 0.48 $16.30 million $0.45 32.25

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.

Analyst Ratings

This is a breakdown of current ratings and price targets for FleetCor Technologies and Moneygram International, as provided by MarketBeat.com.

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

FleetCor Technologies presently has a consensus target price of $184.58, indicating a potential upside of 1.74%. Moneygram International has a consensus target price of $16.21, indicating a potential upside of 11.74%. Given Moneygram International’s higher possible upside, analysts clearly believe Moneygram International is more favorable than FleetCor Technologies.

Profitability

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

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

Summary

FleetCor Technologies beats Moneygram International on 11 of the 15 factors compared between the two stocks.

FleetCor Technologies Company Profile

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.

Moneygram International Company Profile

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.

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