Wise vs Western Union Which Outperforms?

Wise and Western Union are two major players in the financial services industry, with both companies offering various money transfer and currency exchange services. Wise, formerly known as TransferWise, prides itself on offering transparent and low-cost international money transfers, while Western Union has been a long-standing leader in the industry with a vast global network. Investors looking to venture into the financial services sector may be interested in comparing the stocks of Wise and Western Union to identify potential growth opportunities.

Wise or Western Union?

When comparing Wise 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 Wise 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. Wise has a dividend yield of -%, while Western Union has a dividend yield of 8.63%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wise reports a 5-year dividend growth of 0.00% year and a payout ratio of -134.54%. 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 Wise P/E ratio at -5.45 and Western Union's P/E ratio at 5.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wise P/B ratio is 1.59 while Western Union's P/B ratio is 5.64.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wise has seen a 5-year revenue growth of -0.14%, while Western Union's is -0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wise's ROE at -26.16% 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 kr16.05 for Wise and $10.78 for Western Union. Over the past year, Wise's prices ranged from kr15.90 to kr34.50, with a yearly change of 116.98%. Western Union's prices fluctuated between $10.51 and $14.19, with a yearly change of 35.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.