Critical Comparison: Western Union (NYSE:WU) and Chime Financial (NASDAQ:CHYM)
by Michael Walen · The Markets DailyWestern Union (NYSE:WU – Get Free Report) and Chime Financial (NASDAQ:CHYM – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.
Valuation and Earnings
This table compares Western Union and Chime Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Western Union | $4.04 billion | 0.57 | $499.60 million | $1.23 | 5.96 |
| Chime Financial | $2.19 billion | 5.73 | -$1.01 billion | ($0.07) | -472.64 |
Western Union has higher revenue and earnings than Chime Financial. Chime Financial is trading at a lower price-to-earnings ratio than Western Union, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Western Union has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Chime Financial has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.
Profitability
This table compares Western Union and Chime Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Western Union | 9.79% | 50.89% | 5.87% |
| Chime Financial | -0.74% | -1.28% | -0.92% |
Analyst Recommendations
This is a summary of current ratings and price targets for Western Union and Chime Financial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Western Union | 8 | 6 | 0 | 0 | 1.43 |
| Chime Financial | 1 | 3 | 14 | 4 | 2.95 |
Western Union presently has a consensus target price of $7.55, indicating a potential upside of 3.01%. Chime Financial has a consensus target price of $32.33, indicating a potential downside of 2.27%. Given Western Union’s higher probable upside, equities research analysts plainly believe Western Union is more favorable than Chime Financial.
Insider and Institutional Ownership
91.8% of Western Union shares are owned by institutional investors. 3.3% of Western Union shares are owned by company insiders. Comparatively, 12.3% of Chime Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Western Union beats Chime Financial on 10 of the 15 factors compared between the two stocks.
About Western Union
The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices. The Consumer Services segments offers bill payment services, which facilitate payments for consumers, businesses, and other organizations, as well as money order services, retail foreign exchange services, prepaid cards, lending partnerships, and digital wallets. The company was founded in 1851 and is headquartered in Denver, Colorado.
About Chime Financial
Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.
Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.