Remitly Global (RELY) & Its Peers Critical Analysis

Remitly Global (NASDAQ:RELY) is one of 192 public companies in the “Business services, not elsewhere classified” industry, but how does it compare to its peers? We will compare Remitly Global to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Profitability

This table compares Remitly Global and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Remitly Global	-5.63%	-11.58%	-6.57%
Remitly Global Competitors	-15.66%	-154.85%	-4.68%

Institutional & Insider Ownership

74.3% of Remitly Global shares are owned by institutional investors. Comparatively, 57.6% of shares of all “Business services, not elsewhere classified” companies are owned by institutional investors. 8.1% of Remitly Global shares are owned by company insiders. Comparatively, 16.7% of shares of all “Business services, not elsewhere classified” companies 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.

Risk & Volatility

Remitly Global has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500. Comparatively, Remitly Global’s peers have a beta of 1.31, indicating that their average share price is 31% more volatile than the S&P 500.

Valuation and Earnings

This table compares Remitly Global and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Remitly Global	$944.28 million	-$117.84 million	-56.11
Remitly Global Competitors	$9.46 billion	$454.57 million	5.97

Remitly Global’s peers have higher revenue and earnings than Remitly Global. Remitly Global is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and price targets for Remitly Global and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Remitly Global	0	2	8	0	2.80
Remitly Global Competitors	913	5984	12295	319	2.62

Remitly Global presently has a consensus target price of $22.38, suggesting a potential upside of 13.93%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 6.90%. Given Remitly Global’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Remitly Global is more favorable than its peers.

Summary

Remitly Global peers beat Remitly Global on 7 of the 13 factors compared.

Remitly Global Company Profile

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.