Sparta Commercial Services (OTCMKTS:SRCO) vs. Shift4 Payments (NYSE:FOUR) Head-To-Head Review

Sparta Commercial Services (OTCMKTS:SRCOGet Rating) and Shift4 Payments (NYSE:FOURGet Rating) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sparta Commercial Services and Shift4 Payments, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sparta Commercial Services 0 0 0 0 N/A
Shift4 Payments 1 3 7 0 2.55

Shift4 Payments has a consensus target price of $72.50, indicating a potential upside of 51.83%. Given Shift4 Payments’ higher possible upside, analysts clearly believe Shift4 Payments is more favorable than Sparta Commercial Services.

Risk and Volatility

Sparta Commercial Services has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Shift4 Payments has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sparta Commercial Services and Shift4 Payments’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sparta Commercial Services $260,000.00 8.08 -$2.30 million N/A N/A
Shift4 Payments $1.37 billion 2.94 -$48.20 million ($0.43) -111.04

Sparta Commercial Services has higher earnings, but lower revenue than Shift4 Payments.

Profitability

This table compares Sparta Commercial Services and Shift4 Payments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sparta Commercial Services -2,012.23% -2.01% -690.34%
Shift4 Payments -1.50% 3.32% 0.64%

Institutional & Insider Ownership

72.8% of Shift4 Payments shares are held by institutional investors. 0.5% of Sparta Commercial Services shares are held by insiders. Comparatively, 12.2% of Shift4 Payments shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Shift4 Payments beats Sparta Commercial Services on 9 of the 11 factors compared between the two stocks.

Sparta Commercial Services Company Profile (Get Rating)

Sparta Commercial Services, Inc., a technology company, develops, markets, and manages business websites and mobile applications for smartphones and tablets under the iMobileApp name. It offers mobile applications for agriculture dealerships, racetracks, private clubs, country clubs, restaurants, and grocery stores. The company also owns and manages websites, which sell on-demand motorcycle, recreational vehicle, power-sport vehicle, and truck title history reports for consumers, retail dealers, auction houses, insurance companies, and banks/finance companies; and designs, launches, maintains, and hosts websites for businesses. In addition, it offers an equipment-leasing product for local and state agencies that helps to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment. Further, the company provides a range of hemp-derived cannabinol products through newworldhealthcbd.com. The company was incorporated in 1980 and is based in New York, New York.

Shift4 Payments Company Profile (Get Rating)

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.

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