Comparing Capita (OTCMKTS:CTAGY) and Flywire (NASDAQ:FLYW)

Capita (OTCMKTS:CTAGY) and Flywire (NASDAQ:FLYW) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Capita and Flywire’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capita	N/A	N/A	N/A
Flywire	4.23%	2.49%	1.86%

Institutional & Insider Ownership

95.9% of Flywire shares are held by institutional investors. 3.9% of Flywire shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Capita has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Flywire has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Capita and Flywire, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capita	0	0	0	0	0.00
Flywire	1	10	4	0	2.20

Flywire has a consensus target price of $15.62, indicating a potential upside of 32.22%. Given Flywire’s stronger consensus rating and higher possible upside, analysts plainly believe Flywire is more favorable than Capita.

Earnings and Valuation

This table compares Capita and Flywire”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capita	$3.50 billion	1.17	-$221.54 million	N/A	N/A
Flywire	$511.49 million	2.81	-$8.57 million	$0.04	295.25

Flywire has lower revenue, but higher earnings than Capita.

Summary

Flywire beats Capita on 11 of the 12 factors compared between the two stocks.

About Capita

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates in two divisions: Public Service and Capita Experience divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection and debt management, complaint handling, customer experience system and software, acquisition and retention, and data and analytics. In addition, the company offers licensing and support, support, digital policing, and engineering practice; learning and development services; education service and local education authority software; solutions for central and local government services; and business process services. Further, it provides pension administration and software, pensions consulting, and data solutions; finance software, automation, and management information systems solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT solutions; and actuarial, defence, financial, healthcare, housing, legal, public safety, retail, retail banking, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.

About Flywire

Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company’s platform facilitates payment flows across multiple currencies, payment types, and payment options, as well as provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. The company was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.