Contrasting Repay (NASDAQ:RPAY) and EVO Payments (NASDAQ:EVOP)

Repay (NASDAQ:RPAYGet Rating) and EVO Payments (NASDAQ:EVOPGet Rating) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Repay and EVO Payments, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Repay 0 1 4 0 2.80
EVO Payments 0 0 3 0 3.00

Repay currently has a consensus price target of $22.00, indicating a potential upside of 94.17%. EVO Payments has a consensus price target of $28.50, indicating a potential upside of 30.97%. Given Repay’s higher probable upside, equities analysts clearly believe Repay is more favorable than EVO Payments.

Earnings & Valuation

This table compares Repay and EVO Payments’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Repay $219.26 million 4.68 -$50.08 million ($0.28) -40.46
EVO Payments $496.64 million 3.67 $8.65 million $0.03 725.58

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

Profitability

This table compares Repay and EVO Payments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Repay -8.63% 6.85% 3.79%
EVO Payments 2.33% -11.72% 5.33%

Risk and Volatility

Repay has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, EVO Payments has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

Insider & Institutional Ownership

91.8% of EVO Payments shares are held by institutional investors. 11.5% of Repay shares are held by company insiders. Comparatively, 42.6% of EVO Payments shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

EVO Payments beats Repay on 10 of the 14 factors compared between the two stocks.

About Repay (Get Rating)

Repay Holdings Corporation provides integrated payment processing solutions to industry-oriented markets. 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 processing, virtual credit card processing, automated clearing house (ACH) processing, enhanced ACH processing, and instant funding that are processed through its proprietary payment channels, such as Web-based, mobile application, text-to-pay, interactive voice response, and point of sale. In addition, the company provides payment processing solutions to customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals. It sells its products through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.

About EVO Payments (Get Rating)

EVO Payments, Inc. operates as an integrated merchant acquirer and payment processor in the Americas and Europe. Its payment and commerce solutions consist of EMV, chip and signature enabled POS terminals, virtual POS terminals for desktops, mobile acceptance and mPOS solutions software-based POS solutions, online hosted payments, and integrated payment service provider. It also offers value added solutions, such as gateway solutions, online hosted payments page capabilities prevention and management reporting, loyalty programs, mobile-based SMS integrated payment collection services, security tokenization and encryption solutions at the point-of-sale, dynamic currency conversion, ACH, and other ancillary solutions. The company also offers processing capabilities for specific industries and provides merchants with recurring billing, multi-currency authorization and settlement, and cross-border processing and settlement. In addition, it provides other services that enable through technical integrations with third-party providers. The company offers its services to approximately 550,000 merchants. EVO Payments, Inc. was founded in 1989 and is headquartered in Atlanta, Georgia.

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