WageWorks (NYSE: WAGE) is one of 98 public companies in the “Business Support Services” industry, but how does it compare to its rivals? We will compare WageWorks to related businesses based on the strength of its earnings, dividends, profitability, risk, valuation, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

63.0% of shares of all “Business Support Services” companies are held by institutional investors. 3.5% of WageWorks shares are held by insiders. Comparatively, 11.9% of shares of all “Business Support Services” companies are held 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.

Volatility and Risk

WageWorks has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, WageWorks’ rivals have a beta of 1.12, meaning that their average share price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for WageWorks and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WageWorks 0 1 4 0 2.80
WageWorks Competitors 735 2086 2674 84 2.38

WageWorks presently has a consensus price target of $80.30, indicating a potential upside of 38.45%. As a group, “Business Support Services” companies have a potential downside of 2.04%. Given WageWorks’ stronger consensus rating and higher possible upside, equities analysts clearly believe WageWorks is more favorable than its rivals.

Valuation & Earnings

This table compares WageWorks and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
WageWorks $434.87 million $81.87 million 53.21
WageWorks Competitors $1.11 billion $178.14 million 21.28

WageWorks’ rivals have higher revenue and earnings than WageWorks. WageWorks is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares WageWorks and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WageWorks 9.60% 9.52% 3.30%
WageWorks Competitors -129.09% -181.38% -5.96%

Summary

WageWorks beats its rivals on 7 of the 13 factors compared.

WageWorks Company Profile

WageWorks, Inc. is engaged in administering Consumer-Directed Benefits (CDBs). The Company administers CBDs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA) and other employee benefits. Its CDB programs assist employees and their families in saving money by using pre-tax dollars to pay for certain of their healthcare, dependent care and commuter expenses. Employers financially benefit from its programs through reduced payroll taxes. It provides operational support services to its clients and its cross-functional teams, including customer support and claims processing. It administers HSAs for employers that allow employee participants to invest funds to be used for qualified healthcare expenses.

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