CardConnect Corp (NASDAQ: CCN) and WEX (NYSE:WEX) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.
Valuation & Earnings
This table compares CardConnect Corp and WEX’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| CardConnect Corp | N/A | N/A | N/A | N/A | N/A |
| WEX | $1.17 billion | 3.91 | $377.31 million | $1.66 | 64.20 |
WEX has higher revenue and earnings than CardConnect Corp.
Insider and Institutional Ownership
31.6% of CardConnect Corp shares are held by institutional investors. 48.3% of CardConnect Corp shares are held by company insiders. Comparatively, 0.9% of WEX shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares CardConnect Corp and WEX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CardConnect Corp | -1.00% | N/A | -3.75% |
| WEX | 6.09% | 13.03% | 3.23% |
Analyst Ratings
This is a summary of current ratings and price targets for CardConnect Corp and WEX, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CardConnect Corp | 0 | 2 | 4 | 0 | 2.67 |
| WEX | 0 | 2 | 8 | 0 | 2.80 |
CardConnect Corp presently has a consensus price target of $16.00, indicating a potential upside of 6.31%. WEX has a consensus price target of $121.22, indicating a potential upside of 13.75%. Given WEX’s stronger consensus rating and higher probable upside, analysts plainly believe WEX is more favorable than CardConnect Corp.
Summary
WEX beats CardConnect Corp on 7 of the 9 factors compared between the two stocks.
CardConnect Corp Company Profile
CardConnect Corp., formerly FinTech Acquisition Corp., is a holding company. The Company holds interests in CardConnect, LLC. The Company is a provider of payment processing solutions to merchants throughout the United States. The Company’s segments include Merchant Acquiring Services and Other. The Company’s platform allows it to provide payment solutions, customer support and tools for its distribution partners and merchants. Its solutions and services enable distribution partners to manage their business and for merchants to securely accept electronic payments. Its Merchant Acquiring services business involves providing end-to-end electronic payment processing services to merchants by facilitating the exchange of information and funds between them and cardholders’ financial institutions. It undertakes or facilitates through third parties, merchant set-up and training, transaction authorization, settlement, merchant funding, merchant assistance and support, and risk management.
WEX Company Profile
WEX Inc. is a provider of corporate payment solutions. The Company operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. The Fleet Solutions segment provides customers with payment and transaction processing services designed for the needs of commercial and government fleets. The Travel and Corporate Solutions segment focuses on the complex payment environment of business-to-business payments, providing customers with payment processing solutions for their corporate payment and transaction monitoring needs. The Health and Employee Benefit Solutions segment provides healthcare payment products and software as a service consumer directed platforms, as well as payroll related benefits to customers in Brazil. The United States operations include the Company and its subsidiaries WEX Bank, WEX FleetOne, Electronic Funds Source LLC and WEX Health.
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