Critical Contrast: Agritek (OTCMKTS:AGTK) vs. WEX (NYSE:WEX)

Agritek (OTCMKTS:AGTK) and WEX (NYSE:WEX) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

97.5% of WEX shares are owned by institutional investors. 9.9% of Agritek shares are owned by insiders. Comparatively, 1.4% of WEX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Agritek has a beta of -0.23, suggesting that its stock price is 123% less volatile than the S&P 500. Comparatively, WEX has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Agritek and WEX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agritek	0	0	0	0	0.00
WEX	0	10	4	0	2.29

WEX has a consensus target price of $172.30, suggesting a potential upside of 26.04%. Given WEX’s stronger consensus rating and higher probable upside, analysts plainly believe WEX is more favorable than Agritek.

Profitability

This table compares Agritek and WEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agritek	N/A	N/A	N/A
WEX	11.50%	42.66%	3.33%

Earnings & Valuation

This table compares Agritek and WEX”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agritek	N/A	N/A	N/A	N/A	N/A
WEX	$2.66 billion	1.78	$304.10 million	$8.91	15.34

WEX has higher revenue and earnings than Agritek.

Summary

WEX beats Agritek on 9 of the 10 factors compared between the two stocks.

About Agritek

Agritek Holdings, Inc. distributes hemp and cannabis products under the Hemp Pops, MD Vapes, Rehab Rx, Higher Society, and California Premiums brands in the United States. Its products include human ingestible, such as tinctures, capsules, and gummies; CBD edibles; topicals; and pet products. The company also offers business services, including operational and compliance consulting, funding and financing, dispensary and retail, commercial production and equipment build out, multichannel supply chain, and consumer product, as well as branding, marketing, and sales solutions. In addition, it is involved in the acquisition and leasing of real estate properties, such as cultivation space and related facilities to licensed marijuana growers and dispensary owners. Agritek Holdings, Inc. distributes its products through e-commerce websites comprising RehabRx.com and Hemppops.com; third-party e-commerce websites; and various brick and mortar retailers. The company was formerly known as MediSwipe Inc. and changed its name to Agritek Holdings, Inc. in April 2014. Agritek Holdings, Inc. was incorporated in 1997 and is headquartered in Miami, Florida.

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.