Critical Review: WageWorks (WAGE) and Higher One Holdings (ONE)
WageWorks (NYSE: WAGE) and Higher One Holdings (NYSE:ONE) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.
Volatility & Risk
WageWorks has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Higher One Holdings has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.
Earnings & Valuation
This table compares WageWorks and Higher One Holdings’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|WageWorks||$434.87 million||5.43||$81.87 million||$1.09||54.59|
|Higher One Holdings||N/A||N/A||N/A||$0.16||32.19|
WageWorks has higher revenue and earnings than Higher One Holdings. Higher One Holdings is trading at a lower price-to-earnings ratio than WageWorks, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and target prices for WageWorks and Higher One Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Higher One Holdings||0||0||0||0||N/A|
WageWorks presently has a consensus target price of $80.30, indicating a potential upside of 34.96%. Given WageWorks’ higher possible upside, equities analysts plainly believe WageWorks is more favorable than Higher One Holdings.
This table compares WageWorks and Higher One Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Higher One Holdings||-26.77%||-16.36%||-10.01%|
WageWorks beats Higher One Holdings on 7 of the 8 factors compared between the two stocks.
WageWorks, Inc. is engaged in administering Consumer-Directed Benefits (CDBs). The Company administers CBDs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA) and other employee benefits. Its CDB programs assist employees and their families in saving money by using pre-tax dollars to pay for certain of their healthcare, dependent care and commuter expenses. Employers financially benefit from its programs through reduced payroll taxes. It provides operational support services to its clients and its cross-functional teams, including customer support and claims processing. It administers HSAs for employers that allow employee participants to invest funds to be used for qualified healthcare expenses.
About Higher One Holdings
Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.
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