Financial Analysis: Cass Information Systems (NASDAQ:CASS) and Flywire (NASDAQ:FLYW)

Flywire (NASDAQ:FLYW) and Cass Information Systems (NASDAQ:CASS) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Analyst Ratings

This is a breakdown of current ratings for Flywire and Cass Information Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flywire	0	3	11	1	2.87
Cass Information Systems	0	0	1	0	3.00

Flywire currently has a consensus price target of $25.92, indicating a potential upside of 47.46%. Cass Information Systems has a consensus price target of $44.00, indicating a potential upside of 1.73%. Given Flywire’s higher probable upside, equities analysts clearly believe Flywire is more favorable than Cass Information Systems.

Institutional & Insider Ownership

95.9% of Flywire shares are owned by institutional investors. Comparatively, 59.1% of Cass Information Systems shares are owned by institutional investors. 3.9% of Flywire shares are owned by insiders. Comparatively, 2.4% of Cass Information Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Flywire has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Cass Information Systems has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Valuation & Earnings

This table compares Flywire and Cass Information Systems’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flywire	$441.65 million	4.94	-$8.57 million	($0.11)	-159.82
Cass Information Systems	$189.01 million	3.12	$30.06 million	$2.19	19.75

Cass Information Systems has lower revenue, but higher earnings 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 Flywire and Cass Information Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flywire	-2.63%	-1.56%	-1.20%
Cass Information Systems	13.84%	12.37%	1.13%

Summary

Flywire beats Cass Information Systems on 8 of the 15 factors compared between the two stocks.

About Flywire

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.

About Cass Information Systems

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.