Comparing International Money Express (NASDAQ:IMXI) & Mastercard (NYSE:MA)

Mastercard (NYSE:MA) and International Money Express (NASDAQ:IMXI) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Mastercard and International Money Express’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mastercard	45.71%	188.47%	30.05%
International Money Express	9.15%	46.30%	11.93%

Volatility & Risk

Mastercard has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, International Money Express has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Insider and Institutional Ownership

97.3% of Mastercard shares are held by institutional investors. Comparatively, 86.7% of International Money Express shares are held by institutional investors. 0.1% of Mastercard shares are held by insiders. Comparatively, 4.1% of International Money Express shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Mastercard and International Money Express”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mastercard	$28.17 billion	16.50	$12.87 billion	$13.89	36.69
International Money Express	$658.65 million	0.55	$59.51 million	$1.79	6.57

Mastercard has higher revenue and earnings than International Money Express. International Money Express is trading at a lower price-to-earnings ratio than Mastercard, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Mastercard and International Money Express, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mastercard	0	6	23	2	2.87
International Money Express	0	4	3	0	2.43

Mastercard presently has a consensus price target of $607.96, indicating a potential upside of 19.29%. International Money Express has a consensus price target of $24.50, indicating a potential upside of 108.33%. Given International Money Express’ higher possible upside, analysts clearly believe International Money Express is more favorable than Mastercard.

Summary

Mastercard beats International Money Express on 13 of the 15 factors compared between the two stocks.

About Mastercard

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from a physical card and leverages the credit limit of the funding account; a platform to optimize supplier payment enablement campaigns for financial institutions; and treasury intelligence platform that offers corporations with recommendations to enhance working capital performance and accelerate spend on cards. In addition, the company offers Mastercard Send, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and Mastercard Cross-Border Services enables a range of payment flows through a distribution network with a single point of access to send and receive money globally through various channels, including bank accounts, mobile wallets, cards, and cash payouts. Further, it provides cyber and intelligence solutions; insights and analytics, consulting, marketing, loyalty, processing, and payment gateway solutions for e-commerce merchants; and open banking and digital identity services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus name. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.

About International Money Express

International Money Express, Inc., together with its subsidiaries, operates as an omnichannel money remittance services company in the United States, Latin America, Mexico, Central and South America, the Caribbean, Africa, and Asia. The company offers remittance services, which include a suite of ancillary financial processing solutions and payment services; and online payment options, pre-paid debit cards, and direct deposit payroll cards. It provides services through sending and paying agents and company-operated stores, as well as through online and Internet-enabled mobile devices. International Money Express, Inc. is headquartered in Miami, Florida.