WEX (NYSE:WEX – Get Free Report) and Expensify (NASDAQ:EXFY – Get Free Report) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Earnings and Valuation
This table compares WEX and Expensify”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WEX | $2.66 billion | 2.09 | $304.10 million | $8.50 | 19.06 |
| Expensify | $142.10 million | 0.54 | -$21.39 million | ($0.24) | -3.96 |
Risk and Volatility
WEX has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Expensify has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.
Profitability
This table compares WEX and Expensify’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WEX | 11.43% | 48.01% | 3.46% |
| Expensify | -15.05% | -16.00% | -11.42% |
Insider and Institutional Ownership
97.5% of WEX shares are held by institutional investors. Comparatively, 68.4% of Expensify shares are held by institutional investors. 1.4% of WEX shares are held by company insiders. Comparatively, 17.3% of Expensify 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.
Analyst Ratings
This is a summary of recent ratings and recommmendations for WEX and Expensify, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WEX | 0 | 13 | 3 | 0 | 2.19 |
| Expensify | 1 | 1 | 1 | 0 | 2.00 |
WEX currently has a consensus price target of $162.27, indicating a potential upside of 0.17%. Expensify has a consensus price target of $3.50, indicating a potential upside of 268.42%. Given Expensify’s higher probable upside, analysts clearly believe Expensify is more favorable than WEX.
Summary
WEX beats Expensify on 11 of the 14 factors compared between the two stocks.
About WEX
WEX Inc. operates a commerce platform in the United States and internationally. The Mobility segment offers fleet vehicle payment solutions, transaction processing, and information management services; and provides account activation and account retention services; authorization and billing inquiries, and account maintenance services; account management; credit and collections services; merchant services; analytics solutions; and ancillary services and offerings. This segment markets its products directly and indirectly to businesses and government agencies with fleets of commercial vehicles; and indirectly through co-branded and private label relationships. The Corporate Payments segment provides payment solutions, including embedded payments; and accounts payable automation and spend management solutions. This segment also markets its products directly and indirectly to customers in travel, fintech, insurance, consumer bill pay, and media verticals. The Benefits Solutions segment offers software-as-a-service (SaaS) platform for consumer directed healthcare benefits and full-service benefit enrollment solutions. In addition, its SaaS platform includes embedded payment solutions and plan administration services for consumer-directed health benefits; COBRA accounts; and benefit enrollment and administration services. Further, it offers custodial and depository services for health savings accounts; and markets its products through third-party administrators, financial institutions, payroll providers, and health plans. The company was formerly known as Wright Express Corporation and changed its name to WEX Inc. in October 2012. WEX Inc. was founded in 1983 and is based in Portland, Maine.
About Expensify
Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.
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