Jefferson Capital, Inc. (JCAP) vs The Western Union Company (WU)

Jefferson Capital, Inc. and The Western Union Company are both Credit Services companies. The Western Union Company is the larger, with a market value of $1.9B against $1.1B — 1.7× the size. The Western Union Company trades at the lower P/E: 4.9× against 7.9×. Jefferson Capital, Inc. grew revenue faster over the last twelve months: 26.4% against −1.63%. Jefferson Capital, Inc. has the higher net margin (20.1% vs 9.79%) and the higher return on invested capital (42.0% vs 14.9%). Across the 19 metrics below, Jefferson Capital, Inc. leads on 10 and The Western Union Company on 9.

Valuation

Metric JCAP WU Credit Services median
P/E 7.90 4.94 9.64
P/S 1.63 0.48 0.87
P/B 2.26 2.11 1.16
Price to free cash flow 4.89 4.56 2.99
EV/EBITDA 3.34 4.52 9.58
EV/Sales 1.59 0.92 2.32
Earnings yield 12.66% 20.23% 6.72%
Free cash flow yield 20.45% 21.94% 12.33%

Profitability

Metric JCAP WU Credit Services median
Gross margin 64.54% 35.09% 77.13%
Operating margin 45.82% 15.91% 0.34%
Net margin 20.06% 9.79% 9.25%
Free cash flow margin 33.30% 10.51% 13.03%
Return on equity 29.83% 43.97% 8.49%
Return on assets 6.87% 4.96% 2.29%
Return on invested capital 41.96% 14.91% 4.09%

Growth

Metric JCAP WU Credit Services median
Revenue growth (TTM) 26.35% (1.63%) 4.62%
EPS growth (last fiscal year) — (44.53%) —
Revenue growth, 5-year CAGR — (3.48%) 9.13%
Net income growth, 5-year CAGR — (7.66%) 0.00%

Health

Metric JCAP WU Credit Services median
Debt to equity 0.00 2.95 0.68
Current ratio 0.03 1.12 1.55
Net debt to EBITDA (0.14) 1.78 0.13

Dividend

Metric JCAP WU Credit Services median
Dividend yield — 7.89% 3.34%
Payout ratio — 0.48 0.00

Size

Metric JCAP WU Credit Services median
Market cap 1.12b 1.89b 872.19m

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