Critical Review: Payoneer Global (NASDAQ:PAYO) vs. Global Blue Group (NYSE:GB)

Payoneer Global (NASDAQ:PAYO) and Global Blue Group (NYSE:GB) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Volatility and Risk

Payoneer Global has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Global Blue Group has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Payoneer Global and Global Blue Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Payoneer Global	0	1	8	0	2.89
Global Blue Group	0	1	0	0	2.00

Payoneer Global currently has a consensus target price of $10.06, suggesting a potential upside of 51.32%. Global Blue Group has a consensus target price of $6.00, suggesting a potential downside of 19.89%. Given Payoneer Global’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Payoneer Global is more favorable than Global Blue Group.

Earnings and Valuation

This table compares Payoneer Global and Global Blue Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Payoneer Global	$977.72 million	2.45	$121.16 million	$0.26	25.58
Global Blue Group	$545.29 million	2.74	$90.58 million	$0.37	20.24

Payoneer Global has higher revenue and earnings than Global Blue Group. Global Blue Group is trading at a lower price-to-earnings ratio than Payoneer Global, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

82.2% of Payoneer Global shares are held by institutional investors. Comparatively, 89.7% of Global Blue Group shares are held by institutional investors. 2.6% of Payoneer Global shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Payoneer Global and Global Blue Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Payoneer Global	9.81%	13.42%	1.30%
Global Blue Group	16.56%	45.20%	4.69%

Summary

Payoneer Global beats Global Blue Group on 8 of the 14 factors compared between the two stocks.

About Payoneer Global

Payoneer Global Inc. operates as a financial technology company. It operates a payment infrastructure platform that provides customers with a one-stop, global, multi-currency account to serve their accounts receivable and accounts payable needs. The company delivers a suite of services that includes cross-border payments, physical and virtual MasterCard cards, working capital, risk management, and other services. It also offers various payment options with minimal integration required, full back-office functions, and customer support offered. The company's platform delivers bank-grade security, stability, and redundancy. It serves customers, such as small and medium-sized businesses in approximately 190 countries and territories worldwide. Payoneer Global Inc. was founded in 2005 and is headquartered in New York, New York.

About Global Blue Group

Global Blue Group Holding AG, together with its subsidiaries, provides technology-enabled transaction processing services for merchants, banks, acquirers, governments, and travelers in Europe, the Asia Pacific, and internationally. The company operates in three segments: Tax Free Shopping Technology Solutions (TFSS), Added-Value Payment Solutions (AVPS), and Retail Tech Solutions (RTS). It offers TFSS, a value added tax (VAT) refund service that allows eligible shoppers to reclaim VAT on goods purchased outside of their home country; and intelligence and marketing services. The company also provides AVPS, a service which enables customers to pay in their choice of preferred currency, home or destination, and at the point of sale (POS) when shopping outside of their home country under the Dynamic Currency Choice and Currency Select brands. In addition, it offers currency conversion services for POS, e-commerce return solutions, dynamic currency conversion (DCC) services, and DCC services at ATMs, as well as multi-currency processing services for online retailers. Further, the company provides ZigZag, a technology platform that fully digitalizes the eCommerce returns experience and enhances the process for both retailers and consumers; Yocuda that enables retailers to send digital receipts to their customers; and ShipUp, a post-purchase engagement solution for online purchases enabling brands to deliver seamless, proactive, and branded post-purchase communication. Global Blue Group Holding AG was founded in 1980 and is headquartered in Wangen-Brüttisellen, Switzerland.