Comparing Paymentus (PAY) and Its Competitors

Paymentus (NYSE:PAY) is one of 342 public companies in the “Financial Services” industry, but how does it weigh in compared to its peers? We will compare Paymentus to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, risk, profitability and dividends.

Profitability

This table compares Paymentus and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paymentus	6.24%	15.26%	12.80%
Paymentus Competitors	-409.62%	-15.98%	-6.09%

Insider and Institutional Ownership

78.4% of Paymentus shares are held by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are held by institutional investors. 55.7% of Paymentus shares are held by company insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Paymentus and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	4	3	2	2.78
Paymentus Competitors	1966	6868	11617	443	2.50

Paymentus presently has a consensus target price of $38.86, suggesting a potential upside of 18.68%. As a group, “Financial Services” companies have a potential downside of 1.58%. Given Paymentus’ stronger consensus rating and higher probable upside, equities analysts clearly believe Paymentus is more favorable than its peers.

Volatility & Risk

Paymentus has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Paymentus’ peers have a beta of 2.49, suggesting that their average share price is 149% more volatile than the S&P 500.

Earnings & Valuation

This table compares Paymentus and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Paymentus	$1.20 billion	$66.94 million	49.61
Paymentus Competitors	$6.30 billion	$1.07 billion	8.36

Paymentus’ peers have higher revenue and earnings than Paymentus. Paymentus is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Paymentus beats its peers on 9 of the 13 factors compared.

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.