Finding best tech stock: Intuit vs. Western Union

Published Wed, Mar 25 20152:47 PM EDTUpdated Sat, Oct 14 201710:44 AM EDT

Shares of Intuit , which makes software applications for small businesses such as TurboTax and QuickBooks, is seeing good times this year after reporting better-than-expected earnings. Meanwhile, Western Union 's stock has seen its stock rise as well, as it continues to have a large presence abroad, with 70 percent of revenue coming from overseas. These two technology companies are squaring off Wednesday night against each other on "Fast Money," as part of the show's Madness challenge. Here's a preview of the traders' thoughts so you can make the trade now. Intuit's stock is up 25 percent in the past year, compared to an increase of 19 percent for Western Union. Despite the recent gains, both companies face stiff competition from large players breaking into the space. Facebook, for example, is adding a new feature that will allow users to send and receive money between friends for free. Bitcoin's ability to transfer money to and from countries as closed off as China is also seen as a threat. "Western Union faces a life-threatening challenge from disruptive blockchain applications," said Fast Money trader Brian Kelly . "Those applications offer the same services at a fraction of the cost," he adds. In fact, consumer-to-consumer services accounts for 80 percent of revenue, which leads Karen Finerman to think that Western Union may be a "melting ice cube." But as always, valuations come into play. Trader Tim Seymour points that 'WU' is 30 percent cheaper than its peers, while the company offers a 3 percent dividend yield. "Intuit has plenty of competition and I think it's still losing market share," adds Seymour. Indeed, Google is working on a project that would allow users to pay bills directly through Gmail rather than going to a website, according to reports. Near-term growth opportunities are largely reflected in the current valuations, some analysts note, while the company may see some negative impact from the government's scrutiny over cyber fraud during this tax season. Read More What's the better tech stock? Salesforce vs. Yahoo So which is the better tech stock? After a heated debate, Fast Money traders came out in favor of Intuit. The company moves on to the next round. How it works: For this year's Fast Money Madness Challenge, 16 technology companies square off against each other. Eight of the leading stocks in the S & P information technolog