Analyzing WEX (NYSE:WEX) and Joint Stock Company Kaspi.kz (NASDAQ:KSPI)

Joint Stock Company Kaspi.kz (NASDAQ:KSPI) and WEX (NYSE:WEX) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Joint Stock Company Kaspi.kz and WEX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joint Stock Company Kaspi.kz	2	1	2	0	2.00
WEX	0	12	4	0	2.25

Joint Stock Company Kaspi.kz presently has a consensus target price of $111.00, suggesting a potential upside of 41.13%. WEX has a consensus target price of $172.92, suggesting a potential upside of 12.71%. Given Joint Stock Company Kaspi.kz’s higher possible upside, equities research analysts clearly believe Joint Stock Company Kaspi.kz is more favorable than WEX.

Volatility & Risk

Joint Stock Company Kaspi.kz has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, WEX has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Profitability

This table compares Joint Stock Company Kaspi.kz and WEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joint Stock Company Kaspi.kz	30.35%	55.31%	11.20%
WEX	10.81%	45.10%	3.52%

Valuation & Earnings

This table compares Joint Stock Company Kaspi.kz and WEX”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Joint Stock Company Kaspi.kz	$4.82 billion	3.25	$2.18 billion	$11.09	7.09
WEX	$2.63 billion	2.00	$309.60 million	$7.69	19.95

Joint Stock Company Kaspi.kz has higher revenue and earnings than WEX. Joint Stock Company Kaspi.kz is trading at a lower price-to-earnings ratio than WEX, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

32.2% of Joint Stock Company Kaspi.kz shares are held by institutional investors. Comparatively, 97.5% of WEX shares are held by institutional investors. 1.4% 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.

Summary

Joint Stock Company Kaspi.kz beats WEX on 8 of the 14 factors compared between the two stocks.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.

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.