Critical Contrast: Shift4 Payments (NYSE:FOUR) & International Money Express (NASDAQ:IMXI)

International Money Express (NASDAQ:IMXI) and Shift4 Payments (NYSE:FOUR) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Risk and Volatility

International Money Express has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Shift4 Payments has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.

Institutional and Insider Ownership

86.7% of International Money Express shares are held by institutional investors. Comparatively, 98.9% of Shift4 Payments shares are held by institutional investors. 5.1% of International Money Express shares are held by company insiders. Comparatively, 25.2% of Shift4 Payments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares International Money Express and Shift4 Payments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Money Express	6.26%	35.45%	10.29%
Shift4 Payments	5.02%	40.19%	6.61%

Earnings & Valuation

This table compares International Money Express and Shift4 Payments”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Money Express	$658.65 million	0.70	$58.82 million	$1.28	12.09
Shift4 Payments	$3.33 billion	1.58	$229.60 million	$2.13	27.88

Shift4 Payments has higher revenue and earnings than International Money Express. International Money Express is trading at a lower price-to-earnings ratio than Shift4 Payments, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for International Money Express and Shift4 Payments, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Money Express	1	4	1	0	2.00
Shift4 Payments	0	7	14	1	2.73

International Money Express presently has a consensus target price of $14.33, suggesting a potential downside of 7.35%. Shift4 Payments has a consensus target price of $92.25, suggesting a potential upside of 55.33%. Given Shift4 Payments’ stronger consensus rating and higher probable upside, analysts plainly believe Shift4 Payments is more favorable than International Money Express.

Summary

Shift4 Payments beats International Money Express on 13 of the 15 factors compared between the two stocks.

About International Money Express

International Money Express, Inc., together with its subsidiaries, operates as an omnichannel money remittance services company in the United States, Latin America, Mexico, Central and South America, the Caribbean, Africa, and Asia. The company offers remittance services, which include a suite of ancillary financial processing solutions and payment services; and online payment options, pre-paid debit cards, and direct deposit payroll cards. It provides services through sending and paying agents and company-operated stores, as well as through online and Internet-enabled mobile devices. International Money Express, Inc. is headquartered in Miami, Florida.

About Shift4 Payments

Shift4 Payments, Inc. (NYSE FOUR) provides integrated payment processing and technology solutions in the United States. Its payments platform provides omni-channel card acceptance and processing solutions, including end-to-end payment processing for various payment types; merchant acquiring; proprietary omni-channel gateway; complementary software integrations; integrated and mobile point-of-sale (POS) solutions; security and risk management solutions; and reporting and analytical tools, as well as tokenization, risk management/underwriting, payment device and chargeback management, fraud prevention, and gift card solutions. The company also offers suite of technology solutions, such as Lighthouse, a cloud-based business intelligence tool that includes customer engagement, social media management, online reputation management, scheduling, and product pricing, as well as reporting and analytics; integrated POS for merchants business; and Skytab, a mobile payment solution. In addition, it provides marketplace technology that enable seamless integrations into third-party applications, which includes online delivery services, payroll, timekeeping, and other human resource services. Further, the company offers merchant management, training and education, marketing management, and incentives tracking solutions. Additionally, it provides merchant underwriting, onboarding and activation, training, risk management, and support services; and software integrations and compliance management, and partner support and services. The company was founded in 1998 and is headquartered in Allentown, Pennsylvania.