OFX vs Wise

OFX and Wise (formerly TransferWise) are two popular options for individuals and businesses looking to transfer money internationally. Both companies offer competitive exchange rates and low fees, making them attractive choices for those looking to save money on their international transactions. OFX is known for its personalized service and robust online platform, while Wise is popular for its transparency and ease of use. In this comparison, we will delve into the features, pros, and cons of each platform to help you make an informed decision about which one is best for your needs.

OFX or Wise?

When comparing OFX and Wise, 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 OFX and Wise.

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. OFX has a dividend yield of -%, while Wise has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. OFX reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Wise reports a 5-year dividend growth of 0.00% year and a payout ratio of -161.97%.

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 OFX P/E ratio at 2.15 and Wise's P/E ratio at -7.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. OFX P/B ratio is 3.34 while Wise's P/B ratio is 1.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, OFX has seen a 5-year revenue growth of 0.87%, while Wise's is -0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with OFX's ROE at 159.80% and Wise's ROE at -20.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$2.31 for OFX and kr18.20 for Wise. Over the past year, OFX's prices ranged from A$1.32 to A$2.39, with a yearly change of 80.38%. Wise's prices fluctuated between kr18.20 and kr34.50, with a yearly change of 89.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.