Priority Technology (NASDAQ:PRTH – Get Free Report) and WEX (NYSE:WEX – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Earnings and Valuation
This table compares Priority Technology and WEX”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Priority Technology | $953.01 million | 0.68 | $55.68 million | $0.69 | 11.32 |
| WEX | $2.79 billion | 2.11 | $304.10 million | $10.04 | 17.21 |
Volatility & Risk
Priority Technology has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, WEX has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Institutional and Insider Ownership
11.5% of Priority Technology shares are held by institutional investors. Comparatively, 97.5% of WEX shares are held by institutional investors. 59.4% of Priority Technology shares are held by company insiders. Comparatively, 1.4% of WEX shares are held by company 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.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Priority Technology and WEX, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Priority Technology | 0 | 6 | 2 | 0 | 2.25 |
| WEX | 0 | 8 | 6 | 0 | 2.43 |
Priority Technology currently has a consensus price target of $8.59, suggesting a potential upside of 9.93%. WEX has a consensus price target of $185.64, suggesting a potential upside of 7.41%. Given Priority Technology’s higher possible upside, research analysts plainly believe Priority Technology is more favorable than WEX.
Profitability
This table compares Priority Technology and WEX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Priority Technology | 5.61% | -104.91% | 3.87% |
| WEX | 12.56% | 43.19% | 3.53% |
Summary
WEX beats Priority Technology on 10 of the 14 factors compared between the two stocks.
About Priority Technology
Priority Technology Holdings, Inc. operates as a payment technology company in the United States. The company operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business (B2B) Payments, and Enterprise Payments. It offers SMB payments processing solutions for B2C transactions through independent sales organizations, financial institutions, independent software vendors, and other referral partners through its MX product suite, which includes MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing. The company also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, it provides curated managed services; payment-adjacent technologies to facilitate the acceptance of electronic payments from customers; and Plastiq payables management software, which helps businesses in improving cash flow with instant access to working capital. Further, the company offers embedded finance and BaaS solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. It serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. The company was founded in 2005 and is headquartered in Alpharetta, Georgia.
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.
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