Contrasting Paysafe (NYSE:PSFE) & Usio (NASDAQ:USIO)

Usio (NASDAQ:USIO) and Paysafe (NYSE:PSFE) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Usio	2	1	1	0	1.75
Paysafe	2	4	1	0	1.86

Usio presently has a consensus target price of $4.00, indicating a potential upside of 280.95%. Paysafe has a consensus target price of $9.81, indicating a potential upside of 41.87%. Given Usio’s higher possible upside, equities research analysts plainly believe Usio is more favorable than Paysafe.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Usio	-2.94%	-13.52%	-2.22%
Paysafe	-10.73%	11.55%	1.83%

Insider & Institutional Ownership

20.2% of Usio shares are held by institutional investors. Comparatively, 54.4% of Paysafe shares are held by institutional investors. 17.8% of Usio shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Usio has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Paysafe has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.

Valuation and Earnings

This table compares Usio and Paysafe”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Usio	$85.39 million	0.34	-$2.51 million	($0.09)	-11.67
Paysafe	$1.70 billion	0.21	-$182.51 million	($3.15)	-2.20

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

Summary

Paysafe beats Usio on 7 of the 13 factors compared between the two stocks.

About Usio

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check and Check Conversion for electronic payment facilitation. In addition, the company offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. Further, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Additionally, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through the internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.

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.