Reviewing Tenet Fintech Group (OTCMKTS:PKKFF) and WEX (NYSE:WEX)

WEX (NYSE:WEX) and Tenet Fintech Group (OTCMKTS:PKKFF) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Valuation and Earnings

This table compares WEX and Tenet Fintech Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEX	$2.63 billion	2.17	$309.60 million	$7.91	21.06
Tenet Fintech Group	$31.17 million	0.34	-$56.92 million	($0.32)	-0.13

WEX has higher revenue and earnings than Tenet Fintech Group. Tenet Fintech Group is trading at a lower price-to-earnings ratio than WEX, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

WEX has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Tenet Fintech Group has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for WEX and Tenet Fintech Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEX	0	12	3	0	2.20
Tenet Fintech Group	0	0	0	0	0.00

WEX presently has a consensus price target of $181.50, suggesting a potential upside of 8.97%. Given WEX’s stronger consensus rating and higher probable upside, equities research analysts plainly believe WEX is more favorable than Tenet Fintech Group.

Profitability

This table compares WEX and Tenet Fintech Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEX	11.79%	41.87%	3.71%
Tenet Fintech Group	N/A	N/A	N/A

Insider & Institutional Ownership

97.5% of WEX shares are owned by institutional investors. Comparatively, 0.3% of Tenet Fintech Group shares are owned by institutional investors. 1.4% of WEX shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

WEX beats Tenet Fintech Group on 13 of the 14 factors compared between the two stocks.

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.

About Tenet Fintech Group

Tenet Fintech Group Inc., through its subsidiaries, provides various analytics and AI-based services to small-and-medium businesses and financial institutions. It offers Business Hub, a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B transactions among its members. The company was formerly known as Peak Fintech Group Inc. and changed its name to Tenet Fintech Group Inc. in November 2021. Tenet Fintech Group Inc. was incorporated in 2008 and is headquartered in Toronto, Canada.