Critical Analysis: Remitly Global (RELY) & Its Competitors

Remitly Global (NASDAQ:RELY) is one of 342 publicly-traded companies in the “Financial Services” industry, but how does it weigh in compared to its rivals? We will compare Remitly Global to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, risk and institutional ownership.

Institutional and Insider Ownership

74.3% of Remitly Global shares are held by institutional investors. Comparatively, 43.2% of shares of all “Financial Services” companies are held by institutional investors. 6.5% of Remitly Global shares are held by insiders. Comparatively, 22.1% of shares of all “Financial Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Remitly Global and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Remitly Global	0	1	10	1	3.00
Remitly Global Competitors	1990	6910	11697	444	2.50

Remitly Global presently has a consensus price target of $27.78, indicating a potential upside of 14.74%. As a group, “Financial Services” companies have a potential downside of 1.63%. Given Remitly Global’s stronger consensus rating and higher possible upside, equities analysts plainly believe Remitly Global is more favorable than its rivals.

Volatility and Risk

Remitly Global has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, Remitly Global’s rivals have a beta of 0.14, indicating that their average stock price is 86% less volatile than the S&P 500.

Profitability

This table compares Remitly Global and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Remitly Global	N/A	N/A	N/A
Remitly Global Competitors	-249.09%	-54.59%	-6.19%

Valuation and Earnings

This table compares Remitly Global and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Remitly Global	$1.81 billion	N/A	17.42
Remitly Global Competitors	$273.64 million	-$98.00 million	8.66

Remitly Global has higher revenue and earnings than its rivals. Remitly Global is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Remitly Global beats its rivals on 11 of the 12 factors compared.

About Remitly Global

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.