Western Union (NYSE:WU) and DigiAsia (NASDAQ:FAAS) Critical Contrast

DigiAsia (NASDAQ:FAAS) and Western Union (NYSE:WU) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Institutional and Insider Ownership

19.2% of DigiAsia shares are held by institutional investors. Comparatively, 91.8% of Western Union shares are held by institutional investors. 67.3% of DigiAsia shares are held by insiders. Comparatively, 1.6% of Western Union shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DigiAsia	N/A	N/A	N/A
Western Union	21.83%	66.11%	7.04%

Analyst Ratings

This is a summary of current ratings and price targets for DigiAsia and Western Union, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DigiAsia	0	0	0	0	0.00
Western Union	5	7	0	0	1.58

Western Union has a consensus target price of $8.61, suggesting a potential upside of 0.66%. Given Western Union’s stronger consensus rating and higher possible upside, analysts clearly believe Western Union is more favorable than DigiAsia.

Risk and Volatility

DigiAsia has a beta of 2.26, meaning that its share price is 126% more 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.

Valuation and Earnings

This table compares DigiAsia and Western Union”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DigiAsia	N/A	N/A	-$60,000.00	N/A	N/A
Western Union	$4.21 billion	0.66	$934.20 million	$2.64	3.24

Western Union has higher revenue and earnings than DigiAsia.

Summary

Western Union beats DigiAsia on 8 of the 10 factors compared between the two stocks.

About DigiAsia

DigiAsia Corp. operates as a financial technology frim. The company was founded by Alexander Steven Rusli on October 23, 2017 and is headquartered in Singapore.

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.