WU vs. MMS, EXLS, PAY, WEX, DLO, CNXC, CBZ, FLYW, NVEI, and TNET
Should you be buying Western Union stock or one of its competitors? The main competitors of Western Union include Maximus (MMS), ExlService (EXLS), Paymentus (PAY), WEX (WEX), DLocal (DLO), Concentrix (CNXC), CBIZ (CBZ), Flywire (FLYW), Nuvei (NVEI), and TriNet Group (TNET). These companies are all part of the "business services, not elsewhere classified" industry.
Western Union (NYSE:WU) and Maximus (NYSE:MMS) are both mid-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, media sentiment, valuation, analyst recommendations, risk, dividends, profitability and community ranking.
Western Union pays an annual dividend of $0.94 per share and has a dividend yield of 6.9%. Maximus pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. Western Union pays out 56.0% of its earnings in the form of a dividend. Maximus pays out 39.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Western Union has higher earnings, but lower revenue than Maximus. Western Union is trading at a lower price-to-earnings ratio than Maximus, indicating that it is currently the more affordable of the two stocks.
Western Union has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Maximus has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
Western Union received 154 more outperform votes than Maximus when rated by MarketBeat users. However, 65.78% of users gave Maximus an outperform vote while only 53.97% of users gave Western Union an outperform vote.
88.8% of Western Union shares are held by institutional investors. Comparatively, 99.3% of Maximus shares are held by institutional investors. 0.7% of Western Union shares are held by insiders. Comparatively, 1.4% of Maximus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Western Union currently has a consensus target price of $12.95, indicating a potential downside of 4.36%. Maximus has a consensus target price of $102.00, indicating a potential upside of 24.60%. Given Maximus' stronger consensus rating and higher probable upside, analysts clearly believe Maximus is more favorable than Western Union.
In the previous week, Western Union had 6 more articles in the media than Maximus. MarketBeat recorded 9 mentions for Western Union and 3 mentions for Maximus. Maximus' average media sentiment score of 1.33 beat Western Union's score of 0.20 indicating that Maximus is being referred to more favorably in the news media.
Western Union has a net margin of 14.37% compared to Maximus' net margin of 3.73%. Western Union's return on equity of 113.63% beat Maximus' return on equity.
Summary
Maximus beats Western Union on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding WU and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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