IDT vs WU: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
IDT and WU are similarly sized, but WU trades noticeably cheaper on forward earnings (3.97x vs 19.99x): the market is paying up for IDT's profile and pricing WU more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
IDT vs WU: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | IDT | WU | What it tells you |
|---|---|---|---|
| Market cap | $1.96B | $1.87B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 19.99 | 3.97 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 22.83 | 4.83 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.62 | 0.54 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 92% of range | 3% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 5.49 | 2.06 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: WU is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how IDT and WU affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. IDT and WU share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined IDT and WU exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does IDT Corporation (IDT) do?
IDT Corporation, based in Newark, New Jersey and controlled by founder Howard Jonas, runs four segments. National Retail Solutions (NRS) sells point-of-sale terminals, payment processing and advertising to independent convenience stores and bodegas. BOSS Money is a digital international money-transfer service. net2phone sells cloud phone and contact-center software to businesses. Traditional Communications, which includes BOSS Revolution calling, IDT Global carrier services and prepaid calling, still brings in about two thirds of revenue, roughly $866 million of the ~$1.3 billion total in fiscal 2026 (year ended July 31, 2026).
What does Western Union (WU) do?
Western Union moves money across borders for consumers and businesses through a hybrid model: a vast physical agent network (retail locations in more than 200 countries and territories) alongside a growing Branded Digital app and wallet business. Its core Consumer Money Transfer segment still generates most revenue, while a faster-growing Consumer Services arm (bill payment, travel money, foreign exchange, and digital wallets like the newer V Go product) is being built out to diversify away from cash transfers. Full-year 2025 revenue was about $4.1 billion, down roughly 4% reported, as pricing and volume pressure in key corridors weighed on the legacy business.
IDT vs WU: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- IDT drivers: NRS terminal network and payments; BOSS Money remittances.
- WU drivers: Signs of stabilization in the core; Digital and Consumer Services growth.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Traditional Communications is in long-term secular decline as messaging apps replace paid international calls, and it remains the majority of revenue. For WU, the central risk is competitive share loss: Wise and Remitly have overtaken or approached Western Union's transfer volumes with lower-cost, more transparent digital models, eroding its highest-margin physical business.
IDT or WU: which should you pick?
IDT vs WU: the full fundamentals
IDT. At $81.49 (October 9, 2026 close), IDT trades near 24x trailing GAAP earnings of $3.46 per share and about 21x non-GAAP EPS of $3.82. Netting out ~$272 million of unrestricted cash and investments and no debt, enterprise value is around $1.8 billion, or about 10x the midpoint of fiscal 2027 adjusted EBITDA guidance of $176 to $180 million. Part of that cash reflects customer deposits in the fintech businesses rather than freely available capital, and because IDT owns about 82% of NRS, not all of NRS's EBITDA accrues to IDT shareholders. Fiscal 2027 guidance also calls for gross profit of $545 to $555 million, about 11% growth at the midpoint.
WU. Western Union trades at deep-value multiples (price/sales near 0.6x) that reflect years of revenue erosion and margin compression rather than growth optimism. The very high dividend yield is a defining feature and a debate point: it rewards income holders but also signals market doubt about the durability of earnings. Full-year 2025 revenue was about $4.1 billion with GAAP EPS of roughly $1.52.
Headline figures (approximate, October 2026): IDT shows revenue (fy2026, ended july 2026) ~$1.30B, net income (fy2026) ~$87M, diluted eps (fy2026) ~$3.46, adjusted ebitda (fy2026) ~$155M; WU shows revenue (ttm) ~$4.1B, market cap ~$2.4B, trailing p/e ~6x, forward p/e ~5x.
The bottom line: IDT vs WU
IDT and WU are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined IDT and WU exposure against your real portfolio. It is not an investment adviser.
Wondering how IDT or WU fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in IDT Corporation with AI
Connect the broker you already use and ask Walnut's AI how IDT fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between IDT and WU?
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IDT Corporation, based in Newark, New Jersey and controlled by founder Howard Jonas, runs four segments. Western Union moves money across borders for consumers and businesses through a hybrid model: a vast physical agent network (retail locations in more than 200 countries and territories) alongside a growing Branded Digital app and wallet business. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is IDT or WU the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, IDT or WU?
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On forward P/E (as of October 2026), IDT trades at 19.99x and WU at 3.97x, so WU is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both IDT and WU?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of IDT vs WU?
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IDT: Traditional Communications is in long-term secular decline as messaging apps replace paid international calls, and it remains the majority of revenue. BOSS Money competes with Remitly, Western Union, Wise and others in a price-competitive market, and remittance flows are exposed to US immigration policy and proposed remittance taxes. NRS depends on small independent retailers and faces larger point-of-sale and payments players. IDT is effectively controlled by Howard Jonas through Class A shares, so outside shareholders have limited influence over spin-offs, related-party dealings and capital allocation. Some of fiscal 2026's strength may not repeat: NRS's record Q4 included a one-time tariff refund, and cash generated by operations, excluding customer deposits, fell by roughly 44%. The money-transfer and calling businesses carry regulatory costs, including a $2.9 million Universal Service Fund audit charge that IDT has appealed and $21.1 million of accrued FCC-related fees at July 31, 2025. Minority holders own close to a fifth of NRS. Related-party links run through the Jonas family's other public companies; IDT, for instance, rents office space in Jerusalem from Rafael Holdings. The long-running Straight Path stockholder suit, which sought about $1.2 billion, ended in IDT's favor when the Delaware Supreme Court affirmed the trial ruling on December 3, 2025. WU: The central risk is competitive share loss: Wise and Remitly have overtaken or approached Western Union's transfer volumes with lower-cost, more transparent digital models, eroding its highest-margin physical business. Margins have compressed, with Q1 2026 net income falling roughly 48% year over year on flat revenue as costs and the tax rate rose. The elevated dividend yield can signal market skepticism about sustainability if earnings keep sliding, and any dividend adjustment would be a material event for income-focused holders. Regulatory scrutiny of money transmission, compliance costs, and foreign-exchange volatility add further pressure, and a structural shift toward cheaper cross-border rails could keep discounting the legacy franchise.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell IDT or WU; figures are approximate and dated (as of October 2026). Verify current data before investing.