Reviewing Paymentus (NYSE:PAY) and Repay (NASDAQ:RPAY)

Paymentus (NYSE:PAY) and Repay (NASDAQ:RPAY) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares Paymentus and Repay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paymentus	5.37%	12.63%	10.69%
Repay	-35.79%	8.89%	4.31%

Institutional & Insider Ownership

78.4% of Paymentus shares are held by institutional investors. Comparatively, 82.7% of Repay shares are held by institutional investors. 75.4% of Paymentus shares are held by insiders. Comparatively, 12.0% of Repay shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Paymentus and Repay”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paymentus	$1.04 billion	3.85	$44.17 million	$0.43	74.64
Repay	$313.04 million	1.65	-$10.16 million	($1.26)	-4.49

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

Risk & Volatility

Paymentus has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, Repay has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Paymentus and Repay, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	4	4	0	2.50
Repay	0	5	4	0	2.44

Paymentus currently has a consensus price target of $37.00, suggesting a potential upside of 15.28%. Repay has a consensus price target of $7.22, suggesting a potential upside of 27.60%. Given Repay’s higher possible upside, analysts clearly believe Repay is more favorable than Paymentus.

Summary

Paymentus beats Repay on 10 of the 13 factors compared between the two stocks.

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.

About Repay

Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. 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 card processing, automated clearing house (ACH) processing, e-cash, and digital wallet services; virtual credit card processing, enhanced ACH processing, instant funding, clearing and settlement, and communication solutions; and proprietary payment channels that include Web-based, virtual terminal, online client portal, mobile application, text-to-pay, interactive voice response, and point of sale services. It serves customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.