Head to Head Comparison: FleetCor Technologies (NYSE:FLT) and Cass Information Systems (CASS)

FleetCor Technologies (NYSE: FLT) and Cass Information Systems (NASDAQ:CASS) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Volatility and Risk

FleetCor Technologies has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Cass Information Systems has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Profitability

This table compares FleetCor Technologies and Cass Information Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FleetCor Technologies 32.90% 21.15% 6.85%
Cass Information Systems 18.49% 12.14% 1.73%

Valuation and Earnings

This table compares FleetCor Technologies and Cass Information Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FleetCor Technologies $2.25 billion 7.91 $740.20 million $7.88 25.15
Cass Information Systems $135.30 million 5.29 $25.01 million N/A N/A

FleetCor Technologies has higher revenue and earnings than Cass Information Systems.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for FleetCor Technologies and Cass Information Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FleetCor Technologies 0 1 12 1 3.00
Cass Information Systems 0 0 0 0 N/A

FleetCor Technologies presently has a consensus target price of $208.00, indicating a potential upside of 4.97%. Given FleetCor Technologies’ higher probable upside, equities research analysts plainly believe FleetCor Technologies is more favorable than Cass Information Systems.

Dividends

Cass Information Systems pays an annual dividend of $0.96 per share and has a dividend yield of 1.6%. FleetCor Technologies does not pay a dividend. Cass Information Systems has raised its dividend for 13 consecutive years.

Insider and Institutional Ownership

94.4% of FleetCor Technologies shares are owned by institutional investors. Comparatively, 53.3% of Cass Information Systems shares are owned by institutional investors. 4.6% of FleetCor Technologies shares are owned by company insiders. Comparatively, 4.9% of Cass Information Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

FleetCor Technologies beats Cass Information Systems on 11 of the 15 factors compared between the two stocks.

FleetCor Technologies Company Profile

FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.

Cass Information Systems Company Profile

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. It operates through two segments, Information Services and Banking Services. The company's services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. It also processes and pays energy invoices, including electricity, gas, waste, and other facility related expenses; and provides telecommunications expense management solutions comprising bill processing, audit, and payment services for telephone, data line, wireless, and communication equipment expenses. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of commercial banking products and services, such as checking, savings, and time deposit accounts; commercial and commercial real estate loans; and other cash management services to privately owned businesses, and churches and church-related ministries. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and additional leased facilities in Fenton, Missouri, Santa Ana, California, and 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 St. Louis, Missouri.

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