WEX (NYSE:WEX) and Pax Global Tech (OTCMKTS:PXGYF) Critical Comparison

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

Profitability

This table compares WEX and Pax Global Tech’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%
Pax Global Tech	N/A	N/A	N/A

Volatility & Risk

WEX has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Pax Global Tech has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Institutional & Insider Ownership

97.5% of WEX shares are owned by institutional investors. 1.4% of WEX shares are owned 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.

Earnings & Valuation

This table compares WEX and Pax Global Tech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEX	$2.60 billion	2.28	$309.60 million	$7.91	21.89
Pax Global Tech	$774.67 million	1.17	$91.46 million	N/A	N/A

WEX has higher revenue and earnings than Pax Global Tech.

Analyst Recommendations

This is a summary of recent ratings for WEX and Pax Global Tech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEX	0	11	3	0	2.21
Pax Global Tech	0	0	0	0	0.00

WEX currently has a consensus target price of $179.8182, suggesting a potential upside of 3.87%. Given WEX’s stronger consensus rating and higher probable upside, research analysts clearly believe WEX is more favorable than Pax Global Tech.

Summary

WEX beats Pax Global Tech on 12 of the 12 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 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.