Stamps.com (NASDAQ:STMP) and WEX (NYSE:WEX) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Earnings and Valuation
This table compares Stamps.com and WEX’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stamps.com||$586.93 million||2.48||$168.64 million||$9.84||8.66|
|WEX||$1.49 billion||6.38||$168.29 million||$7.64||28.79|
Volatility and Risk
Stamps.com has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, WEX has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.
Institutional & Insider Ownership
95.0% of Stamps.com shares are owned by institutional investors. Comparatively, 98.9% of WEX shares are owned by institutional investors. 7.3% of Stamps.com shares are owned by company insiders. Comparatively, 1.1% of WEX shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings for Stamps.com and WEX, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stamps.com currently has a consensus price target of $80.80, indicating a potential downside of 5.21%. WEX has a consensus price target of $230.79, indicating a potential upside of 4.94%. Given WEX’s stronger consensus rating and higher possible upside, analysts plainly believe WEX is more favorable than Stamps.com.
This table compares Stamps.com and WEX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
WEX beats Stamps.com on 9 of the 14 factors compared between the two stocks.
Stamps.com Inc. provides Internet-based mailing and shipping solutions in the United States and Europe. The company offers mailing and shipping solutions to mail and ship various mail pieces and packages through the United States Postal Service (USPS) under the Stamps.com and Endicia brands. Its solutions support various USPS mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select, and others. The company's USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using personal computer, printer, and Internet connection. It also provides multi carrier shipping solutions under the MetaPack, ShipStation, ShipWorks, and ShippingEasy brands; mailing and shipping integration solutions comprising electronic postage for transactions to partners who manage the front-end process; branded insurance to insure mails or packages; and international postage solutions. In addition, the company offers customized postage solutions under the PhotoStamps and PictureItPostage brand names, which allow consumers to turn digital photos, designs, or images into USPS-approved postage; and sells NetStamps labels, shipping labels, other mailing labels, dedicated postage printers, scales, and other mailing and shipping-focused office supplies through its mailing and shipping supplies stores. It serves individuals, small businesses, home offices, medium-size businesses, large enterprises, e-commerce merchants, and warehouse shippers. The company was formerly known as StampMaster, Inc. and changed its name to Stamps.com Inc. in December 1998. Stamps.com Inc. was founded in 1996 and is headquartered in El Segundo, California.
WEX Inc. provides corporate card payment solutions in North and South America, the Asia Pacific, and Europe. It operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. The Fleet Solutions segment offers fleet vehicle payment processing services. Its services include customer, account activation, and account retention services; authorization and billing inquiries, and account maintenance services; premium fleet services; credit and collections services; and merchant services, as well as offers ClearView analytics platform, a Web-based data analytics platform that offers insights to fleet managers and SmartHub mobile application for business managers to access their account information. This segment markets its products directly to commercial and government vehicle fleet customers with small, medium, and large fleets, as well as with over-the-road and long haul fleets; and indirectly through co-branded and private label relationships. The Travel and Corporate Solutions segment provides payment processing solutions for corporate payment and transaction monitoring needs. Its products include virtual cards that are used for transactions where no card is presented and that require pre-authorization; and prepaid and gift card products that enables secure payment and financial management solutions with single card options, access to open or closed loop redemption, load limits, and with various expirations. This segment markets its products directly to commercial and government organizations. The Health and Employee Benefit Solutions segment offers healthcare payment products and software-as-a-service consumer directed platforms for healthcare market, as well as payroll related and employee benefit products in Brazil. 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 headquartered in Portland, Maine.
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