Pax Global Tech (OTCMKTS:PXGYF) vs. Shift4 Payments (NYSE:FOUR) Critical Analysis

Pax Global Tech (OTCMKTS:PXGYF) and Shift4 Payments (NYSE:FOUR) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Insider and Institutional Ownership

98.9% of Shift4 Payments shares are held by institutional investors. 25.2% of Shift4 Payments shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Pax Global Tech and Shift4 Payments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pax Global Tech	0	0	0	0	0.00
Shift4 Payments	0	6	15	2	2.83

Shift4 Payments has a consensus target price of $108.60, indicating a potential upside of 42.41%. Given Shift4 Payments’ stronger consensus rating and higher possible upside, analysts plainly believe Shift4 Payments is more favorable than Pax Global Tech.

Profitability

This table compares Pax Global Tech and Shift4 Payments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pax Global Tech	N/A	N/A	N/A
Shift4 Payments	6.11%	37.05%	6.88%

Volatility & Risk

Pax Global Tech has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Shift4 Payments has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Earnings & Valuation

This table compares Pax Global Tech and Shift4 Payments”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pax Global Tech	$774.67 million	1.01	$91.46 million	N/A	N/A
Shift4 Payments	$3.33 billion	2.02	$229.60 million	$2.70	28.24

Shift4 Payments has higher revenue and earnings than Pax Global Tech.

Summary

Shift4 Payments beats Pax Global Tech on 13 of the 13 factors compared between the two stocks.

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.

About Shift4 Payments

Shift4 Payments, Inc. (NYSE FOUR) provides integrated payment processing and technology solutions in the United States. Its payments platform provides omni-channel card acceptance and processing solutions, including end-to-end payment processing for various payment types; merchant acquiring; proprietary omni-channel gateway; complementary software integrations; integrated and mobile point-of-sale (POS) solutions; security and risk management solutions; and reporting and analytical tools, as well as tokenization, risk management/underwriting, payment device and chargeback management, fraud prevention, and gift card solutions. The company also offers suite of technology solutions, such as Lighthouse, a cloud-based business intelligence tool that includes customer engagement, social media management, online reputation management, scheduling, and product pricing, as well as reporting and analytics; integrated POS for merchants business; and Skytab, a mobile payment solution. In addition, it provides marketplace technology that enable seamless integrations into third-party applications, which includes online delivery services, payroll, timekeeping, and other human resource services. Further, the company offers merchant management, training and education, marketing management, and incentives tracking solutions. Additionally, it provides merchant underwriting, onboarding and activation, training, risk management, and support services; and software integrations and compliance management, and partner support and services. The company was founded in 1998 and is headquartered in Allentown, Pennsylvania.