Reviewing Corpay (NYSE:CPAY) and Paysafe (NYSE:PSFE)

Corpay (NYSE:CPAY) and Paysafe (NYSE:PSFE) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Volatility & Risk

Corpay has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Paysafe has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

Institutional & Insider Ownership

98.8% of Corpay shares are owned by institutional investors. Comparatively, 54.4% of Paysafe shares are owned by institutional investors. 5.0% of Corpay shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Corpay and Paysafe, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corpay	0	6	9	0	2.60
Paysafe	2	4	1	0	1.86

Corpay currently has a consensus price target of $379.71, suggesting a potential upside of 31.47%. Paysafe has a consensus price target of $10.26, suggesting a potential upside of 42.70%. Given Paysafe’s higher probable upside, analysts plainly believe Paysafe is more favorable than Corpay.

Profitability

This table compares Corpay and Paysafe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corpay	25.17%	39.13%	7.20%
Paysafe	-7.35%	11.68%	1.99%

Valuation and Earnings

This table compares Corpay and Paysafe”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corpay	$4.31 billion	4.68	$1.00 billion	$14.73	19.61
Paysafe	$1.70 billion	0.25	$22.16 million	($2.16)	-3.33

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

Summary

Corpay beats Paysafe on 12 of the 14 factors compared between the two stocks.

About Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.

About Paysafe

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.