Head-To-Head Comparison: WEX (NYSE:WEX) & Expensify (NASDAQ:EXFY)

Expensify (NASDAQ:EXFY) and WEX (NYSE:WEX) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Profitability

This table compares Expensify and WEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expensify	-15.05%	-16.00%	-11.42%
WEX	11.43%	48.01%	3.46%

Risk & Volatility

Expensify has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, WEX has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

68.4% of Expensify shares are held by institutional investors. Comparatively, 97.5% of WEX shares are held by institutional investors. 12.3% of Expensify shares are held by company insiders. Comparatively, 1.4% of WEX shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Expensify and WEX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expensify	1	1	1	0	2.00
WEX	0	13	3	0	2.19

Expensify presently has a consensus target price of $3.50, suggesting a potential upside of 329.45%. WEX has a consensus target price of $162.27, suggesting a potential upside of 1.07%. Given Expensify’s higher possible upside, equities research analysts plainly believe Expensify is more favorable than WEX.

Valuation & Earnings

This table compares Expensify and WEX”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expensify	$142.10 million	0.46	-$21.39 million	($0.24)	-3.40
WEX	$2.66 billion	2.07	$304.10 million	$8.50	18.89

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

Summary

WEX beats Expensify on 11 of the 14 factors compared between the two stocks.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.

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.