Analyzing Pax Global Tech (OTCMKTS:PXGYF) and Paysafe (NYSE:PSFE)

Paysafe (NYSE:PSFE) and Pax Global Tech (OTCMKTS:PXGYF) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Institutional and Insider Ownership

54.4% of Paysafe shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Paysafe has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, Pax Global Tech has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Paysafe and Pax Global Tech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysafe	1	3	0	0	1.75
Pax Global Tech	0	0	0	0	0.00

Paysafe presently has a consensus price target of $16.95, suggesting a potential upside of 23.45%. Given Paysafe’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Paysafe is more favorable than Pax Global Tech.

Profitability

This table compares Paysafe and Pax Global Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysafe	-0.02%	10.41%	1.87%
Pax Global Tech	N/A	N/A	N/A

Valuation & Earnings

This table compares Paysafe and Pax Global Tech”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysafe	$1.70 billion	0.48	$22.16 million	($0.02)	-686.50
Pax Global Tech	$774.67 million	1.04	$91.46 million	N/A	N/A

Pax Global Tech has lower revenue, but higher earnings than Paysafe.

Summary

Paysafe beats Pax Global Tech on 7 of the 10 factors compared between the two stocks.

About Paysafe

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.

About Pax Global Tech

PAX Global Technology Limited, an investment holding company, develops and sells electronic funds transfer point-of-sale products in Hong Kong, the People's Republic of China, the United States, and Italy. Its E-payment terminal products include smart E-payment solutions; and android smartPOS, android smart tablet, unattended payment products, PINpad, and Minipigs and mPOS. The company also develops MAXSTORE, a cloud-based Software as a Service platform that provides one-stop terminal management and valu-added services; paxRhino, a key injection service; and CyberLab, a payment application cloud test platform that provides professional one-stop online debugging and testing service. In addition, it offers payment solutions services, and maintenance and installation services. PAX Global Technology Limited was founded in 2000 and is headquartered in Wan Chai, Hong Kong.