Contrasting Freightos (NASDAQ:CRGO) & Western Union (NYSE:WU)

Freightos (NASDAQ:CRGOGet Free Report) and Western Union (NYSE:WUGet Free Report) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Insider and Institutional Ownership

22.7% of Freightos shares are held by institutional investors. Comparatively, 91.8% of Western Union shares are held by institutional investors. 19.6% of Freightos shares are held by company insiders. Comparatively, 3.3% of Western Union shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Freightos and Western Union, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freightos 1 0 1 0 2.00
Western Union 6 7 0 0 1.54

Freightos currently has a consensus target price of $3.00, indicating a potential upside of 100.00%. Western Union has a consensus target price of $8.82, indicating a potential upside of 23.68%. Given Freightos’ stronger consensus rating and higher possible upside, research analysts plainly believe Freightos is more favorable than Western Union.

Profitability

This table compares Freightos and Western Union’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freightos -65.65% -44.81% -30.10%
Western Union 10.88% 55.94% 6.39%

Volatility & Risk

Freightos has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Western Union has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Earnings and Valuation

This table compares Freightos and Western Union”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Freightos $29.46 million 2.62 -$17.52 million ($0.39) -3.85
Western Union $4.05 billion 0.55 $499.60 million $1.36 5.24

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

Summary

Western Union beats Freightos on 9 of the 14 factors compared between the two stocks.

About Freightos

(Get Free Report)

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.

About Western Union

(Get Free Report)

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices. The Consumer Services segments offers bill payment services, which facilitate payments for consumers, businesses, and other organizations, as well as money order services, retail foreign exchange services, prepaid cards, lending partnerships, and digital wallets. The company was founded in 1851 and is headquartered in Denver, Colorado.

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