Head to Head Comparison: Freightos (NASDAQ:CRGO) versus Shift4 Payments (NYSE:FOUR)

Freightos (NASDAQ:CRGO) and Shift4 Payments (NYSE:FOUR) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent recommendations for Freightos and Shift4 Payments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freightos	1	0	1	0	2.00
Shift4 Payments	0	9	12	1	2.64

Freightos presently has a consensus price target of $3.00, indicating a potential upside of 127.27%. Shift4 Payments has a consensus price target of $84.74, indicating a potential upside of 92.38%. Given Freightos’ higher probable upside, equities analysts plainly believe Freightos is more favorable than Shift4 Payments.

Volatility and Risk

Freightos has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, Shift4 Payments has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Earnings and Valuation

This table compares Freightos and Shift4 Payments”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freightos	$29.46 million	2.30	-$17.52 million	($0.35)	-3.77
Shift4 Payments	$4.18 billion	0.93	$119.00 million	$1.05	41.95

Shift4 Payments has higher revenue and earnings than Freightos. Freightos is trading at a lower price-to-earnings ratio than Shift4 Payments, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

22.7% of Freightos shares are held by institutional investors. Comparatively, 98.9% of Shift4 Payments shares are held by institutional investors. 19.6% of Freightos shares are held by insiders. Comparatively, 25.2% of Shift4 Payments shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Freightos and Shift4 Payments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freightos	-59.46%	-37.28%	-25.50%
Shift4 Payments	2.84%	39.27%	5.60%

Summary

Shift4 Payments beats Freightos on 13 of the 15 factors compared between the two stocks.

About Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.

About Shift4 Payments

Shift4 Payments, Inc. (NYSE FOUR) provides integrated payment processing and technology solutions in the United States. Its payments platform provides omni-channel card acceptance and processing solutions, including end-to-end payment processing for various payment types; merchant acquiring; proprietary omni-channel gateway; complementary software integrations; integrated and mobile point-of-sale (POS) solutions; security and risk management solutions; and reporting and analytical tools, as well as tokenization, risk management/underwriting, payment device and chargeback management, fraud prevention, and gift card solutions. The company also offers suite of technology solutions, such as Lighthouse, a cloud-based business intelligence tool that includes customer engagement, social media management, online reputation management, scheduling, and product pricing, as well as reporting and analytics; integrated POS for merchants business; and Skytab, a mobile payment solution. In addition, it provides marketplace technology that enable seamless integrations into third-party applications, which includes online delivery services, payroll, timekeeping, and other human resource services. Further, the company offers merchant management, training and education, marketing management, and incentives tracking solutions. Additionally, it provides merchant underwriting, onboarding and activation, training, risk management, and support services; and software integrations and compliance management, and partner support and services. The company was founded in 1998 and is headquartered in Allentown, Pennsylvania.