Analyzing Paymentus (NYSE:PAY) & Repay (NASDAQ:RPAY)

Paymentus (NYSE:PAY) and Repay (NASDAQ:RPAY) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Valuation & Earnings

This table compares Paymentus and Repay”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paymentus	$1.04 billion	3.93	$44.17 million	$0.43	76.31
Repay	$310.37 million	1.73	-$10.16 million	($1.26)	-4.67

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Paymentus and Repay, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	4	4	0	2.50
Repay	0	5	4	0	2.44

Paymentus currently has a consensus price target of $37.00, suggesting a potential upside of 12.76%. Repay has a consensus price target of $7.22, suggesting a potential upside of 22.62%. Given Repay’s higher probable upside, analysts clearly believe Repay is more favorable than Paymentus.

Risk and Volatility

Paymentus has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, Repay has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Insider & Institutional Ownership

78.4% of Paymentus shares are owned by institutional investors. Comparatively, 82.7% of Repay shares are owned by institutional investors. 75.4% of Paymentus shares are owned by company insiders. Comparatively, 12.0% of Repay shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Paymentus and Repay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paymentus	5.37%	12.63%	10.69%
Repay	-35.79%	8.89%	4.31%

Summary

Paymentus beats Repay on 10 of the 13 factors compared between the two stocks.

About Paymentus

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.

About Repay

Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit card processing, automated clearing house (ACH) processing, e-cash, and digital wallet services; virtual credit card processing, enhanced ACH processing, instant funding, clearing and settlement, and communication solutions; and proprietary payment channels that include Web-based, virtual terminal, online client portal, mobile application, text-to-pay, interactive voice response, and point of sale services. It serves customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.