Head-To-Head Analysis: Western Union (NYSE:WU) & Better Home & Finance (NASDAQ:BETR)

Western Union (NYSE:WU) and Better Home & Finance (NASDAQ:BETR) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for Western Union and Better Home & Finance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Union	7	7	0	0	1.50
Better Home & Finance	1	1	8	0	2.70

Western Union currently has a consensus target price of $6.95, suggesting a potential upside of 3.49%. Better Home & Finance has a consensus target price of $23.71, suggesting a potential upside of 53.99%. Given Better Home & Finance’s stronger consensus rating and higher possible upside, analysts clearly believe Better Home & Finance is more favorable than Western Union.

Profitability

This table compares Western Union and Better Home & Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western Union	8.32%	49.12%	5.56%
Better Home & Finance	-92.56%	-475.83%	-10.09%

Institutional & Insider Ownership

91.8% of Western Union shares are owned by institutional investors. Comparatively, 20.9% of Better Home & Finance shares are owned by institutional investors. 3.3% of Western Union shares are owned by insiders. Comparatively, 27.7% of Better Home & Finance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Western Union has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Better Home & Finance has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.

Valuation and Earnings

This table compares Western Union and Better Home & Finance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Union	$4.05 billion	0.52	$499.60 million	$1.05	6.40
Better Home & Finance	$164.87 million	1.77	-$165.87 million	($11.02)	-1.40

Western Union has higher revenue and earnings than Better Home & Finance. Better Home & Finance is trading at a lower price-to-earnings ratio than Western Union, indicating that it is currently the more affordable of the two stocks.

Summary

Western Union beats Better Home & Finance on 7 of the 13 factors compared between the two stocks.

About Western Union

Western Union is a global payments company that provides cross-border, cross-currency money transfers and other financial services. Customers can send and receive money through the company’s digital platforms and its network of agent locations, as well as use services such as bill payments where available. The company also offers payment and foreign-exchange solutions to businesses and organizations. Its services reach customers in more than 200 countries and territories, combining online and mobile options with in-person access through local agents.

About Better Home & Finance

Better Home & Finance Holding Company is a financial technology company that provides digital services for homeownership. Through its Better brand, the company offers an online platform designed to simplify the process of buying, financing and protecting a home. Its principal businesses include Better Mortgage, a digital mortgage lender and broker; Better Real Estate, which provides residential real estate brokerage services; Better Cover, an insurance platform; and Better Settlement Services, which supports title and closing activities.