Chykingyoung Investment Development (OTCMKTS:CHYI) versus WEX (NYSE:WEX) Critical Review

WEX (NYSE:WEX) and Chykingyoung Investment Development (OTCMKTS:CHYI) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares WEX and Chykingyoung Investment Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEX	12.45%	31.35%	3.92%
Chykingyoung Investment Development	-369.33%	N/A	N/A

Valuation & Earnings

This table compares WEX and Chykingyoung Investment Development”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEX	$2.66 billion	2.63	$266.60 million	$7.88	22.25
Chykingyoung Investment Development	$840,000.00	136.41	-$46.77 million	N/A	N/A

WEX has higher revenue and earnings than Chykingyoung Investment Development.

Risk and Volatility

WEX has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, Chykingyoung Investment Development has a beta of 4.63, suggesting that its share price is 363% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for WEX and Chykingyoung Investment Development, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEX	0	6	6	1	2.62
Chykingyoung Investment Development	0	0	0	0	0.00

WEX presently has a consensus price target of $228.64, indicating a potential upside of 30.41%. Given WEX’s stronger consensus rating and higher possible upside, research analysts clearly believe WEX is more favorable than Chykingyoung Investment Development.

Institutional & Insider Ownership

97.5% of WEX shares are owned by institutional investors. 1.1% of WEX shares are owned by company insiders. Comparatively, 34.5% of Chykingyoung Investment Development shares are owned by company 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

WEX beats Chykingyoung Investment Development on 10 of the 13 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 Chykingyoung Investment Development

Chykingyoung Investment Development Holdings Inc., through its subsidiary, OneWorld Hotel Destination Service Inc., provides Internet hotel booking services. The company offers a proprietary online hotel booking program for connecting users with available rooms in hotels worldwide. It primarily serves travel agents in Vancouver, Toronto, Calgary, and Montreal, Canada. The company was founded in 2006 and is based in Vancouver, Canada.