Head-To-Head Survey: WEX (NYSE:WEX) & Generation Hemp (OTCMKTS:GENH)

Generation Hemp (OTCMKTS:GENH) and WEX (NYSE:WEX) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Generation Hemp and WEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Hemp	-674.14%	-15,656.36%	-195.12%
WEX	11.78%	32.35%	3.89%

Volatility & Risk

Generation Hemp has a beta of -0.38, suggesting that its stock price is 138% less volatile than the S&P 500. Comparatively, WEX has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Generation Hemp and WEX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Hemp	0	0	0	0	0.00
WEX	0	9	3	0	2.25

WEX has a consensus target price of $187.80, suggesting a potential upside of 50.55%. Given WEX’s stronger consensus rating and higher possible upside, analysts clearly believe WEX is more favorable than Generation Hemp.

Insider & Institutional Ownership

97.5% of WEX shares are owned by institutional investors. 60.9% of Generation Hemp shares are owned by company insiders. Comparatively, 1.1% of WEX shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Generation Hemp and WEX”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Hemp	$680,000.00	36.83	-$9.82 million	N/A	N/A
WEX	$2.63 billion	1.63	$309.60 million	$7.50	16.63

WEX has higher revenue and earnings than Generation Hemp.

Summary

WEX beats Generation Hemp on 10 of the 12 factors compared between the two stocks.

About Generation Hemp

Evergreen Sustainable Enterprises, Inc. operates as a hemp company. It engages in leases warehouse space to hemp seed growers. The company was founded on July 28, 2008 and is headquartered in Dallas, TX.

About WEX

WEX Inc. operates a commerce platform in the United States and internationally. The Mobility segment offers fleet vehicle payment solutions, transaction processing, and information management services; and provides account activation and account retention services; authorization and billing inquiries, and account maintenance services; account management; credit and collections services; merchant services; analytics solutions; and ancillary services and offerings. This segment markets its products directly and indirectly to businesses and government agencies with fleets of commercial vehicles; and indirectly through co-branded and private label relationships. The Corporate Payments segment provides payment solutions, including embedded payments; and accounts payable automation and spend management solutions. This segment also markets its products directly and indirectly to customers in travel, fintech, insurance, consumer bill pay, and media verticals. The Benefits Solutions segment offers software-as-a-service (SaaS) platform for consumer directed healthcare benefits and full-service benefit enrollment solutions. In addition, its SaaS platform includes embedded payment solutions and plan administration services for consumer-directed health benefits; COBRA accounts; and benefit enrollment and administration services. Further, it offers custodial and depository services for health savings accounts; and markets its products through third-party administrators, financial institutions, payroll providers, and health plans. The company was formerly known as Wright Express Corporation and changed its name to WEX Inc. in October 2012. WEX Inc. was founded in 1983 and is based in Portland, Maine.