Critical Comparison: FLEETCOR Technologies (NYSE:FLT) and Lyft (NASDAQ:LYFT)

FLEETCOR Technologies (NYSE:FLTGet Rating) and Lyft (NASDAQ:LYFTGet Rating) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for FLEETCOR Technologies and Lyft, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FLEETCOR Technologies 0 3 4 0 2.57
Lyft 0 10 16 0 2.62

FLEETCOR Technologies presently has a consensus target price of $291.88, indicating a potential upside of 18.01%. Lyft has a consensus target price of $47.48, indicating a potential upside of 172.26%. Given Lyft’s stronger consensus rating and higher possible upside, analysts clearly believe Lyft is more favorable than FLEETCOR Technologies.

Institutional and Insider Ownership

97.4% of FLEETCOR Technologies shares are held by institutional investors. Comparatively, 80.4% of Lyft shares are held by institutional investors. 6.2% of FLEETCOR Technologies shares are held by insiders. Comparatively, 5.8% of Lyft shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

FLEETCOR Technologies has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Lyft has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Profitability

This table compares FLEETCOR Technologies and Lyft’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FLEETCOR Technologies 28.97% 34.88% 8.02%
Lyft -22.42% -50.06% -14.14%

Valuation and Earnings

This table compares FLEETCOR Technologies and Lyft’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FLEETCOR Technologies $2.83 billion 6.75 $839.50 million $10.59 23.36
Lyft $3.21 billion 1.89 -$1.06 billion ($2.29) -7.62

FLEETCOR Technologies has higher earnings, but lower revenue than Lyft. Lyft is trading at a lower price-to-earnings ratio than FLEETCOR Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

FLEETCOR Technologies beats Lyft on 9 of the 14 factors compared between the two stocks.

FLEETCOR Technologies Company Profile (Get Rating)

FLEETCOR Technologies, Inc. provides digital payment solutions for businesses to control purchases and make payments. It offers corporate payments solutions, such as accounts payable automation; Virtual Card, which provides a single-use card number for a specific amount usable within a defined timeframe; Cross-Border that is used by its customers to pay international vendors, foreign office and personnel expenses, capital expenditures, and profit repatriation and dividends; and purchasing cards and travel and entertainment cards for its customers to analyze and manage their corporate spending. The company also provides employee expense management solutions, including fuel solutions to businesses and government entities that operate vehicle fleets, as well as to oil and leasing companies, and fuel marketers; lodging solutions to businesses that have employees who travel overnight for work purposes, as well as to airlines and cruise lines to accommodate traveling crews and stranded passengers; and electronic toll payments solutions to businesses and consumers in the form of radio frequency identification tags affixed to vehicles' windshields. In addition, it offers gift card program management and processing services in plastic and digital forms that include card design, production and packaging, delivery and fulfillment, card and account management, transaction processing, promotion development and management, website design and hosting, program analytics, and card distribution channel management. Further, it provides other products consisting of payroll cards, vehicle maintenance service solution, long-haul transportation solution, prepaid food vouchers or cards, and prepaid transportation cards and vouchers. The company serves business, merchant, consumer, and payment network customers in North America, Brazil, and Internationally. The company was founded in 1986 and is headquartered in Atlanta, Georgia.

Lyft Company Profile (Get Rating)

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. The company operates multimodal transportation networks that offer riders personalized and on-demand access to various mobility options. It provides Ridesharing Marketplace, which connects drivers with riders; Express Drive, a flexible car rentals program for drivers; Lyft Rentals that provides vehicles for long-distance trips; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. The company also integrates third-party public transit data into the Lyft app to offer riders various transportation options. In addition, it offers access to autonomous vehicles; centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

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