Critical Analysis: Future FinTech Group (NASDAQ:FTFT) vs. WEX (NYSE:WEX)

WEX (NYSE:WEX) and Future FinTech Group (NASDAQ:FTFT) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares WEX and Future FinTech Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEX	$2.64 billion	3.29	$266.60 million	$6.15	33.68
Future FinTech Group	$37.11 million	0.18	-$33.65 million	N/A	N/A

WEX has higher revenue and earnings than Future FinTech Group.

Analyst Recommendations

This is a breakdown of current ratings and price targets for WEX and Future FinTech Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEX	0	5	7	1	2.69
Future FinTech Group	0	0	0	0	N/A

WEX currently has a consensus price target of $239.58, suggesting a potential upside of 15.68%. Given WEX’s higher probable upside, equities analysts clearly believe WEX is more favorable than Future FinTech Group.

Insider & Institutional Ownership

97.5% of WEX shares are held by institutional investors. Comparatively, 0.2% of Future FinTech Group shares are held by institutional investors. 1.1% of WEX shares are held by insiders. Comparatively, 7.1% of Future FinTech Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

WEX has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Future FinTech Group has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Profitability

This table compares WEX and Future FinTech Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEX	9.32%	31.05%	3.89%
Future FinTech Group	-94.57%	-79.92%	-58.34%

Summary

WEX beats Future FinTech Group on 11 of the 12 factors compared between the two stocks.

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.

About Future FinTech Group

Future FinTech Group Inc., through its subsidiaries, operates online shopping platforms in People's Republic of China. It operates in four segments: Shared Shopping Mall Membership Fee, Fruit Related Products, Sales of Goods, and Others. The company operates Chain Cloud Mall (CCM), a real-name blockchain based e-commerce platform that integrates blockchain and internet technology; and NONOGIRL, a cross-border e-commerce platform. It also engages in coal and aluminum ingots supply chain financing and trading; financial technology service; and cryptocurrency market data and information service businesses, as well as services related to the application and development of blockchain-based technology in financial technology. The company was formerly known as SkyPeople Fruit Juice, Inc. and changed its name to Future FinTech Group Inc. in June 2017. Future FinTech Group Inc. is headquartered in New York, New York.