Contrasting Visa (NYSE:V) & Paysign (NASDAQ:PAYS)

Paysign (NASDAQ:PAYS) and Visa (NYSE:V) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Volatility and Risk

Paysign has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Visa has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysign	$58.38 million	4.87	$3.82 million	$0.13	39.77
Visa	$40.00 billion	16.15	$20.06 billion	$10.21	34.73

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

Profitability

This table compares Paysign and Visa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysign	10.10%	19.18%	3.84%
Visa	50.15%	60.31%	23.46%

Institutional & Insider Ownership

25.9% of Paysign shares are held by institutional investors. Comparatively, 82.2% of Visa shares are held by institutional investors. 22.4% of Paysign shares are held by company insiders. Comparatively, 0.1% of Visa shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Paysign and Visa, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysign	0	1	4	0	2.80
Visa	0	4	19	5	3.04

Paysign presently has a consensus price target of $8.56, suggesting a potential upside of 65.62%. Visa has a consensus price target of $402.52, suggesting a potential upside of 13.51%. Given Paysign’s higher probable upside, analysts plainly believe Paysign is more favorable than Visa.

Summary

Visa beats Paysign on 11 of the 15 factors compared between the two stocks.

About Paysign

Paysign, Inc. provides prepaid card programs, comprehensive patient affordability offerings, digital banking services, and integrated payment processing services for businesses, consumers, and government institutions. Its product offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card. The company markets its prepaid card solutions under the Paysign brand. Its primary market focus is on companies and municipalities that require a streamlined payment solution for rewards, rebates, payment assistance, and other payments to their customers, employees, agents, and others. The company was formerly known as 3PEA International, Inc. and changed its name to Paysign, Inc. in April 2019. Paysign, Inc. was incorporated in 1995 and is headquartered in Henderson, Nevada.

About Visa

Visa Inc. operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services. The company also provides acceptance solutions, which include Cybersource that provides modular and value-added services for connecting merchants to payment processing; risk and identity solutions, such as Visa Advanced Authorization, Visa Secure, Visa Risk and Decision Manager, Visa Consumer Authentication Service, and payment-decisioning solutions for fraud prevention; and Visa Consulting and Analytics, a payment consulting advisory services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brand names. The company serves merchants, financial institutions, and government entities. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.