Financial Analysis: Flywire (NASDAQ:FLYW) and Cass Information Systems (NASDAQ:CASS)
Cass Information Systems (NASDAQ:CASS – Get Free Report) and Flywire (NASDAQ:FLYW – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Risk & Volatility
Cass Information Systems has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Flywire has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.
Earnings & Valuation
This table compares Cass Information Systems and Flywire’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cass Information Systems | $189.01 million | 3.05 | $30.06 million | $2.19 | 19.27 |
| Flywire | $441.65 million | 4.83 | -$8.57 million | ($0.11) | -156.27 |
Cass Information Systems has higher earnings, but lower revenue than Flywire. Flywire is trading at a lower price-to-earnings ratio than Cass Information Systems, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cass Information Systems and Flywire’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cass Information Systems | 13.84% | 12.37% | 1.13% |
| Flywire | -2.63% | -1.56% | -1.20% |
Institutional & Insider Ownership
59.1% of Cass Information Systems shares are held by institutional investors. Comparatively, 95.9% of Flywire shares are held by institutional investors. 2.4% of Cass Information Systems shares are held by company insiders. Comparatively, 3.9% of Flywire shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Cass Information Systems and Flywire, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cass Information Systems | 0 | 0 | 1 | 0 | 3.00 |
| Flywire | 0 | 3 | 11 | 1 | 2.87 |
Cass Information Systems currently has a consensus target price of $44.00, indicating a potential upside of 4.24%. Flywire has a consensus target price of $25.69, indicating a potential upside of 49.46%. Given Flywire’s higher probable upside, analysts plainly believe Flywire is more favorable than Cass Information Systems.
Summary
Flywire beats Cass Information Systems on 8 of the 15 factors compared between the two stocks.
About Cass Information Systems
(Get Free Report)
Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. The company operates through two segments, Information Services and Banking Services. Its services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. The company also processes and pays facility-related invoices, such as electricity, gas, waste, and telecommunications expenses; and provides telecom expense management solutions, as well as church management software solution and on-line platform to provide generosity services for faith-based and non-profit organizations. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of banking products and services, such as demand, savings, time, and money market deposits; commercial, industrial, commercial real estate, and construction and land development loans; and cash management services to privately held businesses, restaurant franchises, and faith-related ministries. Further, it provides B2B payment platform for clients that require an agile fintech partner. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and leased facilities in Colorado Springs, Colorado. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. Cass Information Systems, Inc. was founded in 1906 and is headquartered in Saint Louis, Missouri.
About Flywire
(Get Free Report)
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.
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