Moneygram International Inc (MGI), Xoom Corp (XOOM): Here’s Why The Western Union Company (WU) Is a Good Buy Right Now

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Furthermore, Western Union is a two-for-one deal. You get a piece of the legacy assets (a leading offline money transfer business), and an online business growing at 33% per year. Investors are severely discounting its highly profitable offline business and pricing power going forward.

Western Union’s missteps may have cost it a near-monopoly on money transfer into Mexico, but that doesn’t mean it can’t continue to lead elsewhere around the world. New pricing initiatives and the largest network of agents should help it maintain its competitive position. Western Union is a substantially better business trading at a fraction of the price of Xoom and MoneyGram, making it a compelling buy for value-oriented investors.

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The article Here’s Why Western Union Is a Good Buy Right Now originally appeared on Fool.com and is written by Jordan Wathen.

Fool contributor Jordan Wathen has no position in any stocks mentioned. The Motley Fool recommends Western Union.

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