FleetCor Technologies (NYSE: FLT) and Xoom Corp (NASDAQ:XOOM) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

97.6% of FleetCor Technologies shares are held by institutional investors. 4.3% of FleetCor Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares FleetCor Technologies and Xoom Corp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FleetCor Technologies $2.06 billion 6.85 $1.11 billion $5.06 30.37
Xoom Corp N/A N/A N/A N/A N/A

FleetCor Technologies has higher revenue and earnings than Xoom Corp.

Profitability

This table compares FleetCor Technologies and Xoom Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FleetCor Technologies 23.28% 20.87% 6.85%
Xoom Corp -37.74% -25.16% -21.82%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for FleetCor Technologies and Xoom Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FleetCor Technologies 0 0 12 1 3.08
Xoom Corp 0 0 0 0 N/A

FleetCor Technologies currently has a consensus target price of $181.45, indicating a potential upside of 18.08%. Given FleetCor Technologies’ higher probable upside, analysts clearly believe FleetCor Technologies is more favorable than Xoom Corp.

Summary

FleetCor Technologies beats Xoom Corp on 9 of the 9 factors compared between the two stocks.

About FleetCor Technologies

FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.

About Xoom Corp

Xoom Corporation (Xoom) is engaged in the digital consumer-to-consumer international money transfer business. The Company offers money transfer services from the United States to around 32 countries and its cross-border bill payment services from the United States to approximately five countries. Xoom’s solutions offer its customers a way to send money to, and pay bills for family and friends from any Internet-enabled location. The Company’s operating platform provides various solutions for transferring funds internationally, such as origination, funding, disbursement and transaction processing. The Company’s technology platform includes a customer interface which enables customers to send transactions from its Website, mobile Website or mobile application, using a computer, a tablet or a mobile phone; a risk management system; a transaction processing platform, and a disbursement integration platform. The Company provides its services under the XOOM brand.

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