Marqeta (NASDAQ:MQ – Get Free Report) and Expensify (NASDAQ:EXFY – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Marqeta and Expensify, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Marqeta | 2 | 9 | 1 | 0 | 1.92 |
| Expensify | 1 | 1 | 1 | 0 | 2.00 |
Marqeta presently has a consensus target price of $5.14, suggesting a potential upside of 29.44%. Expensify has a consensus target price of $3.50, suggesting a potential upside of 333.38%. Given Expensify’s stronger consensus rating and higher possible upside, analysts plainly believe Expensify is more favorable than Marqeta.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Marqeta | $624.88 million | 2.71 | -$13.93 million | ($0.03) | -132.33 |
| Expensify | $142.10 million | 0.46 | -$21.39 million | ($0.24) | -3.37 |
Marqeta has higher revenue and earnings than Expensify. Marqeta is trading at a lower price-to-earnings ratio than Expensify, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Marqeta has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Expensify has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.
Insider & Institutional Ownership
78.6% of Marqeta shares are owned by institutional investors. Comparatively, 68.4% of Expensify shares are owned by institutional investors. 12.6% of Marqeta shares are owned by insiders. Comparatively, 12.3% of Expensify shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Marqeta and Expensify’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% |
| Expensify | -15.05% | -16.00% | -11.42% |
Summary
Marqeta beats Expensify on 9 of the 13 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 Expensify
Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.
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