Repay (NASDAQ:RPAY) versus AgroFresh Solutions (NASDAQ:AGFS) Critical Survey

Repay (NASDAQ:RPAY) and AgroFresh Solutions (NASDAQ:AGFS) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Valuation and Earnings

This table compares Repay and AgroFresh Solutions’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Repay N/A N/A $1.52 million ($0.14) -94.29
AgroFresh Solutions $178.79 million 0.61 -$30.06 million ($0.56) -3.82

Repay has higher earnings, but lower revenue than AgroFresh Solutions. Repay is trading at a lower price-to-earnings ratio than AgroFresh Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Repay and AgroFresh Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Repay N/A 1.03% 0.99%
AgroFresh Solutions -20.80% -8.99% -3.61%

Volatility and Risk

Repay has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, AgroFresh Solutions has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Repay and AgroFresh Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Repay 0 0 3 0 3.00
AgroFresh Solutions 0 1 4 0 2.80

Repay currently has a consensus target price of $15.67, indicating a potential upside of 18.69%. AgroFresh Solutions has a consensus target price of $5.08, indicating a potential upside of 137.38%. Given AgroFresh Solutions’ higher possible upside, analysts plainly believe AgroFresh Solutions is more favorable than Repay.

Insider & Institutional Ownership

54.2% of Repay shares are owned by institutional investors. Comparatively, 78.5% of AgroFresh Solutions shares are owned by institutional investors. 1.6% of AgroFresh Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

AgroFresh Solutions beats Repay on 7 of the 13 factors compared between the two stocks.

About Repay

Repay Holdings Corporation provides integrated payment processing solutions in the United States. The company offers credit and debit card processing, automated clearing house processing, and funding solutions. It primarily serves clients in consumer finance, automotive, receivables management, and healthcare sectors, as well as financial institutions. The company was formerly known as Thunder Bridge Acquisition, Ltd. and changed its name to Repay Holdings Corporation in July 2019. Repay Holdings Corporation was founded in 2017 and is headquartered in Atlanta, Georgia.

About AgroFresh Solutions

AgroFresh Solutions, Inc. provides data-driven solutions worldwide. The company uses 1-Methylcyclopropene technology, an ethylene action inhibitor to maintain freshness and extend the shelf life of various fresh produce. Its solutions enable growers and packers of fresh produce to preserve and enhance the freshness, quality, and value of fresh produce, including apples, pears, kiwifruit, plums, persimmons avocados, and bananas, as well as flowers. The company's flagship product is the SmartFresh system that regulates the post-harvest ripening effects of ethylene to preserve the texture, firmness, taste, and appearance of produce during storage, transportation, and retail display. It also provides Harvista technology for use in pre-harvest management of pome fruit, apples, pears, cherries, and blueberries. In addition, the company is developing RipeLock Quality System, a proprietary technology that extends the shelf life of bananas; FreshCloud, a suite of monitoring and screening solutions; and LandSpring, a technology that minimizes stress induced ethylene effects in vegetable seedling transplants allowing for post-transplant vigor. The company was formerly known as Boulevard Acquisition Corp. and changed its name to AgroFresh Solutions, Inc. in July 2015. AgroFresh Solutions, Inc. is headquartered in Philadelphia, Pennsylvania.

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