WEX Story

WEX -- USA Stock

USD 219.31 2.30 1.06%

Macroaxis Story

It looks like ADYEN NV will be up for a correction faster as its share price went up 1.56% today to WEX's 4.71%As many rational traders are trying to avoid technology space, it makes sense to break down WEX Inc a little further and understand how it stands against ADYEN NV and other similar entities. We are going to inspect some of the competitive aspects of both WEX and ADYEN.

Published over a month ago

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Is ADYEN more volatile than WEX Inc (NYSE:WEX)?

By analyzing existing forward indicators between WEX and ADYEN, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in ADYEN with a short position in WEX. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. WEX has an asset utilization ratio of 41.84 percent. This suggests that the company is making $0.42 for each dollar of assets. An increasing asset utilization means that WEX Inc is more efficient with each dollar of assets it utilizes for everyday operations.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as WEX or Okta Inc is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is WEX's Liquidity

WEX financial leverage refers to using borrowed capital as a funding source to finance WEX Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. WEX financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between WEX's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for WEX, but it might be worth checking our own buy vs. sell analysis

Correlation Between WEX and Okta Inc Cl

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding WEX together with similar or unrelated positions with a negative correlation. For example, you can also add Okta Inc to your portfolio. If Okta Inc is not perfectly correlated to WEX it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When WEX for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between WEX and OKTA for more information.

Sale by David Cooper of 1932 shares of WEX

Legal trades by WEX insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

WEX insider trading alert for sale of common stock by David Cooper, Chief Technology Officer, on 9th of April 2021. This event was filed by Wex Inc with SEC on 2021-04-09. Statement of changes in beneficial ownership - SEC Form 4. David Cooper currently serves as senior vice president, chief technology officer of WEX Inc [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving WEX Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at WEX revenue. Based on the latest financial disclosure, WEX Inc reported 1.61 B of revenue. This is 60.5% lower than that of the Technology sector and significantly higher than that of the Software?Infrastructure industry. The revenue for all United States stocks is 82.94% higher than that of the entity. As for ADYEN NV we see revenue of 1.48 B, which is much higher than that of the Software?Infrastructure

	WEX	1.61 Billion
	Sector	0.0
	ADYEN	1.48 Billion

1.6 B

WEX

Sector

1.5 B

ADYEN

Will WEX slide back in March?

WEX current semi deviation rises over 1.82. WEX Inc currently demonstrates below-average downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.17. However, we advise investors to further question WEX Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure WEX's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact WEX's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On WEX

While other entities in the software?infrastructure industry are either recovering or due for a correction, WEX may not be as strong as the others in terms of longer-term growth potentials. While some investors may not share our view, we believe that right now is not a good time to increase your holdings in WEX. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to WEX.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of WEX Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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