Marqeta (NASDAQ:MQ – Get Free Report) and Paysign (NASDAQ:PAYS – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.
Profitability
This table compares Marqeta and Paysign’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Marqeta | -2.23% | -1.62% | -1.00% |
| Paysign | 10.10% | 19.18% | 3.84% |
Volatility & Risk
Marqeta has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Paysign has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Marqeta | $624.88 million | 2.75 | -$13.93 million | ($0.03) | -134.00 |
| Paysign | $58.38 million | 3.58 | $3.82 million | $0.13 | 29.23 |
Paysign has lower revenue, but higher earnings than Marqeta. Marqeta is trading at a lower price-to-earnings ratio than Paysign, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
78.6% of Marqeta shares are held by institutional investors. Comparatively, 25.9% of Paysign shares are held by institutional investors. 12.6% of Marqeta shares are held by insiders. Comparatively, 22.4% of Paysign shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Marqeta and Paysign, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Marqeta | 2 | 9 | 1 | 0 | 1.92 |
| Paysign | 0 | 1 | 4 | 0 | 2.80 |
Marqeta currently has a consensus target price of $5.14, indicating a potential upside of 27.83%. Paysign has a consensus target price of $8.56, indicating a potential upside of 125.33%. Given Paysign’s stronger consensus rating and higher possible upside, analysts plainly believe Paysign is more favorable than Marqeta.
Summary
Paysign beats Marqeta on 11 of the 14 factors compared between the two stocks.
About Marqeta
Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.
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.
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