Reviewing Paysafe (NYSE:PSFE) & Western Union (NYSE:WU)

Paysafe (NYSE:PSFE) and Western Union (NYSE:WU) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Risk and Volatility

Paysafe has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500. Comparatively, Western Union has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Profitability

This table compares Paysafe and Western Union’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysafe	-1.38%	12.92%	2.25%
Western Union	22.19%	96.90%	7.43%

Valuation and Earnings

This table compares Paysafe and Western Union”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysafe	$1.70 billion	0.57	-$20.25 million	$0.36	44.70
Western Union	$4.21 billion	0.84	$934.20 million	$2.73	3.84

Western Union has higher revenue and earnings than Paysafe. Western Union is trading at a lower price-to-earnings ratio than Paysafe, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Paysafe and Western Union, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysafe	2	2	0	0	1.50
Western Union	3	7	0	0	1.70

Paysafe currently has a consensus price target of $17.88, suggesting a potential upside of 11.07%. Western Union has a consensus price target of $12.11, suggesting a potential upside of 15.61%. Given Western Union’s stronger consensus rating and higher possible upside, analysts plainly believe Western Union is more favorable than Paysafe.

Insider and Institutional Ownership

54.4% of Paysafe shares are owned by institutional investors. Comparatively, 91.8% of Western Union shares are owned by institutional investors. 0.9% of Western Union shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Western Union beats Paysafe on 12 of the 13 factors compared between the two stocks.

About Paysafe

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.

About Western Union

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices. The Consumer Services segments offers bill payment services, which facilitate payments for consumers, businesses, and other organizations, as well as money order services, retail foreign exchange services, prepaid cards, lending partnerships, and digital wallets. The company was founded in 1851 and is headquartered in Denver, Colorado.