Critical Survey: Usio (NASDAQ:USIO) and Pax Global Tech (OTCMKTS:PXGYF)

Usio (NASDAQ:USIO) and Pax Global Tech (OTCMKTS:PXGYF) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Usio and Pax Global Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Usio	3.43%	-1.63%	-0.28%
Pax Global Tech	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Usio and Pax Global Tech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Usio	2	0	1	0	1.67
Pax Global Tech	0	0	0	0	0.00

Usio presently has a consensus target price of $4.00, indicating a potential upside of 189.86%. Given Usio’s stronger consensus rating and higher probable upside, equities analysts plainly believe Usio is more favorable than Pax Global Tech.

Earnings and Valuation

This table compares Usio and Pax Global Tech”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Usio	$83.71 million	0.45	$3.31 million	($0.02)	-69.00
Pax Global Tech	$774.67 million	0.95	$91.46 million	N/A	N/A

Pax Global Tech has higher revenue and earnings than Usio.

Volatility & Risk

Usio has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Pax Global Tech has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Institutional and Insider Ownership

20.2% of Usio shares are held by institutional investors. 17.8% of Usio shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Usio beats Pax Global Tech on 7 of the 12 factors compared between the two stocks.

About Usio

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check and Check Conversion for electronic payment facilitation. In addition, the company offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. Further, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Additionally, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through the internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.

About Pax Global Tech

PAX Global Technology Limited, an investment holding company, develops and sells electronic funds transfer point-of-sale products in Hong Kong, the People's Republic of China, the United States, and Italy. Its E-payment terminal products include smart E-payment solutions; and android smartPOS, android smart tablet, unattended payment products, PINpad, and Minipigs and mPOS. The company also develops MAXSTORE, a cloud-based Software as a Service platform that provides one-stop terminal management and valu-added services; paxRhino, a key injection service; and CyberLab, a payment application cloud test platform that provides professional one-stop online debugging and testing service. In addition, it offers payment solutions services, and maintenance and installation services. PAX Global Technology Limited was founded in 2000 and is headquartered in Wan Chai, Hong Kong.