Contrasting Remitly Global (NASDAQ:RELY) & Corpay (NYSE:CPAY)

Corpay (NYSE:CPAY) and Remitly Global (NASDAQ:RELY) 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.

Institutional & Insider Ownership

98.8% of Corpay shares are owned by institutional investors. Comparatively, 74.3% of Remitly Global shares are owned by institutional investors. 5.0% of Corpay shares are owned by company insiders. Comparatively, 7.5% of Remitly Global 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.

Profitability

This table compares Corpay and Remitly Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corpay	24.37%	37.83%	7.26%
Remitly Global	1.36%	3.12%	2.05%

Analyst Recommendations

This is a summary of current ratings and price targets for Corpay and Remitly Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corpay	0	5	9	0	2.64
Remitly Global	1	2	8	0	2.64

Corpay presently has a consensus price target of $375.43, indicating a potential upside of 20.50%. Remitly Global has a consensus price target of $25.88, indicating a potential upside of 78.94%. Given Remitly Global’s higher possible upside, analysts clearly believe Remitly Global is more favorable than Corpay.

Earnings & Valuation

This table compares Corpay and Remitly Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corpay	$3.97 billion	5.48	$1.00 billion	$14.73	21.15
Remitly Global	$1.26 billion	2.39	-$36.98 million	$0.09	160.67

Corpay has higher revenue and earnings than Remitly Global. Corpay is trading at a lower price-to-earnings ratio than Remitly Global, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Corpay has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Remitly Global has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.

Summary

Corpay beats Remitly Global on 11 of the 14 factors compared between the two stocks.

About Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.

About Remitly Global

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.