Flywire vs Western Union Which Offers More Value?

Flywire and Western Union are two prominent companies in the financial services sector, but they operate in different niches. Flywire focuses on providing global payment and receivables solutions for businesses and educational institutions, while Western Union is known for its money transfer services. Both companies have seen growth in recent years, but their stock performances have varied. Investors interested in the financial services sector may want to compare Flywire's focus on innovative payment solutions with Western Union's established money transfer business before making investment decisions.

Flywire or Western Union?

When comparing Flywire and Western Union, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Flywire and Western Union.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Flywire has a dividend yield of -%, while Western Union has a dividend yield of 11.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Flywire reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Western Union reports a 5-year dividend growth of 4.34% year and a payout ratio of 48.10%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Flywire P/E ratio at 144.06 and Western Union's P/E ratio at 5.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Flywire P/B ratio is 3.43 while Western Union's P/B ratio is 5.50.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Flywire has seen a 5-year revenue growth of 2.74%, while Western Union's is -0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Flywire's ROE at 2.49% and Western Union's ROE at 137.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.25 for Flywire and $10.62 for Western Union. Over the past year, Flywire's prices ranged from $15.19 to $31.54, with a yearly change of 107.64%. Western Union's prices fluctuated between $10.62 and $14.19, with a yearly change of 33.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.