Flywire (NASDAQ:FLYW – Get Rating) and ServiceSource International (NASDAQ:SREV – Get Rating) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.
Risk & Volatility
Flywire has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, ServiceSource International has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.
Earnings & Valuation
This table compares Flywire and ServiceSource International’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flywire | $201.15 million | 11.36 | -$28.08 million | ($0.48) | -44.39 |
| ServiceSource International | $195.70 million | 0.75 | -$14.72 million | ($0.09) | -16.22 |
ServiceSource International has lower revenue, but higher earnings than Flywire. Flywire is trading at a lower price-to-earnings ratio than ServiceSource International, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
76.1% of Flywire shares are owned by institutional investors. Comparatively, 73.6% of ServiceSource International shares are owned by institutional investors. 37.5% of Flywire shares are owned by insiders. Comparatively, 4.4% of ServiceSource International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Flywire and ServiceSource International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flywire | -13.72% | -4.11% | -3.22% |
| ServiceSource International | -5.14% | -0.61% | -0.30% |
Analyst Ratings
This is a summary of recent ratings for Flywire and ServiceSource International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flywire | 0 | 1 | 5 | 1 | 3.00 |
| ServiceSource International | 0 | 0 | 0 | 0 | N/A |
Flywire currently has a consensus price target of $38.43, indicating a potential upside of 80.33%. Given Flywire’s higher possible upside, analysts clearly believe Flywire is more favorable than ServiceSource International.
About Flywire (Get Rating)
Flywire Corporation, together with its subsidiaries, operates as a payment enablement and software company in the United States, Canada, and the United Kingdom, 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; and 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. Flywire Corporation 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.
About ServiceSource International (Get Rating)
ServiceSource International, Inc. provides business process-as-a-service solutions worldwide. The company provides digital solutions, including demand qualification, demand conversion, and account management; customer success solutions, such as onboarding, adoption, and renewals management; CJX solutions; and channel management solutions comprise partner recruitment, partner onboarding and enablement, and partner success management. It also offers sales performance analysis, business case, pricing and contract structuring, data integration, implementation, launch, performance and execution, and client benchmarking and continuous improvement solutions. The company sells its solutions through sales organization; and serves cloud and SaaS, software and hardware, medical device and diagnostic equipment, and industrial IoT industries. ServiceSource International, Inc. was founded in 1999 and is headquartered in Denver, Colorado.
Want More Great Investing Ideas?
Receive News & Ratings for Flywire Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Flywire and related companies with MarketBeat.com’s FREE daily email newsletter.
