Remitly Global (NASDAQ:RELY) and Repay (NASDAQ:RPAY) Financial Contrast

Repay (NASDAQ:RPAY) and Remitly Global (NASDAQ:RELY) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for Repay and Remitly Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repay	0	5	4	0	2.44
Remitly Global	0	1	8	0	2.89

Repay presently has a consensus target price of $7.22, suggesting a potential upside of 38.09%. Remitly Global has a consensus target price of $27.88, suggesting a potential upside of 71.01%. Given Remitly Global’s stronger consensus rating and higher probable upside, analysts clearly believe Remitly Global is more favorable than Repay.

Valuation & Earnings

This table compares Repay and Remitly Global”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repay	$313.04 million	1.53	-$10.16 million	($1.26)	-4.15
Remitly Global	$1.26 billion	2.66	-$36.98 million	$0.06	271.67

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

Insider & Institutional Ownership

82.7% of Repay shares are owned by institutional investors. Comparatively, 74.3% of Remitly Global shares are owned by institutional investors. 12.0% of Repay shares are owned by company insiders. Comparatively, 8.1% of Remitly Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Repay has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Remitly Global has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Repay	-35.79%	8.89%	4.31%
Remitly Global	0.96%	2.31%	1.51%

Summary

Remitly Global beats Repay on 8 of the 14 factors compared between the two stocks.

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.

About Remitly Global

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.