Megaport (OTCMKTS:MGPPF) vs. Priority Technology (NASDAQ:PRTH) Critical Analysis

Priority Technology (NASDAQ:PRTH) and Megaport (OTCMKTS:MGPPF) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Institutional and Insider Ownership

11.5% of Priority Technology shares are owned by institutional investors. 77.4% of Priority Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Priority Technology and Megaport’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Priority Technology	-0.17%	N/A	-0.09%
Megaport	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Priority Technology and Megaport, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Priority Technology	0	1	2	0	2.67
Megaport	0	0	1	0	3.00

Priority Technology presently has a consensus price target of $7.75, indicating a potential upside of 144.87%. Megaport has a consensus price target of $15.37, indicating a potential upside of 50.69%. Given Priority Technology’s higher probable upside, equities research analysts plainly believe Priority Technology is more favorable than Megaport.

Earnings & Valuation

This table compares Priority Technology and Megaport’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Priority Technology	$755.61 million	0.32	-$1.31 million	($0.63)	-5.02
Megaport	N/A	N/A	N/A	N/A	N/A

Megaport has lower revenue, but higher earnings than Priority Technology.

Summary

Priority Technology beats Megaport on 5 of the 8 factors compared between the two stocks.

About Priority Technology

Priority Technology Holdings, Inc. operates as a payment technology company in the United States. The company operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business (B2B) Payments, and Enterprise Payments. It offers SMB payments processing solutions for B2C transactions through independent sales organizations, financial institutions, independent software vendors, and other referral partners through its MX product suite, which includes MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing. The company also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, it provides curated managed services; payment-adjacent technologies to facilitate the acceptance of electronic payments from customers; and Plastiq payables management software, which helps businesses in improving cash flow with instant access to working capital. Further, the company offers embedded finance and BaaS solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. It serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. The company was founded in 2005 and is headquartered in Alpharetta, Georgia.

About Megaport

Megaport Limited provides elastic interconnection services to the enterprises and service providers in Australia, New Zealand, Hong Kong, Singapore, Japan, North America, and Europe. It operates a platform that enables customers to connect their network to other services, as well as creates agile network that connects in multiple regions. The company also offers Megaport Virtual Edge, an on-demand and vendor-neutral Network Function Virtualization service that provides virtual infrastructure for network services at the edge of Megaport's global software-defined network; internet exchange services; and Megaport Marketplace, an online hub the interconnects service providers and enterprise customers. In addition, it provides cloud connectivity solutions and virtual routing for cloud networking. The company was founded in 2013 and is headquartered in Fortitude Valley, Australia.