Envestnet (NYSE:ENV) and Moneygram International (NYSE:MGI) Financial Review

Envestnet (NYSE:ENV) and Moneygram International (NASDAQ:MGI) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Valuation & Earnings

This table compares Envestnet and Moneygram International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Envestnet $812.36 million 4.37 $5.76 million $1.25 58.19
Moneygram International $1.45 billion 0.09 -$24.00 million $0.43 5.16

Envestnet has higher earnings, but lower revenue than Moneygram International. Moneygram International is trading at a lower price-to-earnings ratio than Envestnet, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

93.8% of Envestnet shares are held by institutional investors. Comparatively, 78.5% of Moneygram International shares are held by institutional investors. 5.0% of Envestnet shares are held by insiders. Comparatively, 45.7% of Moneygram International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Envestnet and Moneygram International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envestnet 0 4 5 1 2.70
Moneygram International 2 1 1 0 1.75

Envestnet currently has a consensus price target of $73.78, suggesting a potential upside of 1.43%. Moneygram International has a consensus price target of $4.67, suggesting a potential upside of 110.21%. Given Moneygram International’s higher possible upside, analysts plainly believe Moneygram International is more favorable than Envestnet.

Volatility & Risk

Envestnet has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Moneygram International has a beta of 2.96, suggesting that its share price is 196% more volatile than the S&P 500.

Profitability

This table compares Envestnet and Moneygram International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Envestnet -2.52% 10.28% 4.64%
Moneygram International -3.22% -4.67% 0.47%

Summary

Envestnet beats Moneygram International on 11 of the 15 factors compared between the two stocks.

Envestnet Company Profile

Envestnet, Inc., together with its subsidiaries, provides intelligent systems for wealth management and financial wellness in the United States and internationally. It operates through Envestnet and Envestnet | Yodlee segments. The company's product and services suites include Envestnet | Enterprise, which provides an end-to-end open architecture wealth management platform, as well as sells data aggregation and reporting, data analytics, and digital advice capabilities; Envestnet | Tamarac that provides trading, rebalancing, portfolio accounting, performance reporting, and client relationship management software; Envestnet | Retirement Solutions, which offer a suite of services for advisor-sold retirement plans; and Envestnet | Portfolio Management Consultants that provide research, due diligence, and consulting services to assist advisors in creating investment solutions for their clients, and patented portfolio overlay and tax optimization services. It also provides Envestnet | Yodlee data aggregation and data analytics platform, which offers cloud-based innovation for digital financial services. The company primarily serves banks, wealth management and brokerage firms, Internet services companies, and registered investment advisers. Envestnet, Inc. was founded in 1999 and is headquartered in Chicago, Illinois.

Moneygram International Company Profile

MoneyGram International, Inc., together with its subsidiaries, provides money transfer services in the United States and internationally. The company operates through two segments, Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment offers money transfer services and bill payment services primarily to unbanked and underbanked consumers. The Financial Paper Products segment provides money orders to consumers through its agents and financial institutions; and official check outsourcing services for financial institutions. This segment sells its money orders under the MoneyGram brand and on a private label or co-branded basis with retail and financial institution. The company also offers digital solutions, such as moneygram.com, mobile solutions, account deposit, and kiosk-based services. MoneyGram International, Inc. was founded in 1940 and is based in Dallas, Texas.

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