Critical Survey: Western Union (NYSE:WU) versus Pax Global Tech (OTCMKTS:PXGYF)

Pax Global Tech (OTCMKTS:PXGYF) and Western Union (NYSE:WU) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares Pax Global Tech and Western Union’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pax Global Tech	N/A	N/A	N/A
Western Union	18.80%	60.85%	6.97%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Pax Global Tech and Western Union, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pax Global Tech	0	0	0	0	0.00
Western Union	4	10	0	0	1.71

Western Union has a consensus price target of $8.70, suggesting a potential upside of 0.97%. Given Western Union’s stronger consensus rating and higher probable upside, analysts clearly believe Western Union is more favorable than Pax Global Tech.

Institutional & Insider Ownership

91.8% of Western Union shares are held by institutional investors. 1.6% of Western Union shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Pax Global Tech and Western Union”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pax Global Tech	$774.67 million	0.92	$91.46 million	N/A	N/A
Western Union	$4.10 billion	0.67	$934.20 million	$2.29	3.76

Western Union has higher revenue and earnings than Pax Global Tech.

Risk & Volatility

Pax Global Tech has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Western Union has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Summary

Western Union beats Pax Global Tech on 10 of the 11 factors compared between the two stocks.

About Pax Global Tech

PAX Global Technology Limited, an investment holding company, develops and sells electronic funds transfer point-of-sale products in Hong Kong, the People's Republic of China, the United States, and Italy. Its E-payment terminal products include smart E-payment solutions; and android smartPOS, android smart tablet, unattended payment products, PINpad, and Minipigs and mPOS. The company also develops MAXSTORE, a cloud-based Software as a Service platform that provides one-stop terminal management and valu-added services; paxRhino, a key injection service; and CyberLab, a payment application cloud test platform that provides professional one-stop online debugging and testing service. In addition, it offers payment solutions services, and maintenance and installation services. PAX Global Technology Limited was founded in 2000 and is headquartered in Wan Chai, Hong Kong.

About Western Union

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices. The Consumer Services segments offers bill payment services, which facilitate payments for consumers, businesses, and other organizations, as well as money order services, retail foreign exchange services, prepaid cards, lending partnerships, and digital wallets. The company was founded in 1851 and is headquartered in Denver, Colorado.