Analyzing Paysign (NASDAQ:PAYS) & Cantaloupe (NASDAQ:CTLP)

Paysign (NASDAQ:PAYS) and Cantaloupe (NASDAQ:CTLP) 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 profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Earnings and Valuation

This table compares Paysign and Cantaloupe”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysign	$82.03 million	3.46	$3.82 million	$0.13	39.62
Cantaloupe	$302.55 million	2.59	$64.53 million	$0.18	59.06

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Paysign and Cantaloupe, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysign	0	1	3	0	2.75
Cantaloupe	1	6	1	0	2.00

Paysign presently has a consensus target price of $9.42, indicating a potential upside of 82.85%. Cantaloupe has a consensus target price of $12.60, indicating a potential upside of 18.53%. Given Paysign’s stronger consensus rating and higher possible upside, analysts plainly believe Paysign is more favorable than Cantaloupe.

Insider & Institutional Ownership

25.9% of Paysign shares are held by institutional investors. Comparatively, 75.8% of Cantaloupe shares are held by institutional investors. 22.4% of Paysign shares are held by insiders. Comparatively, 7.1% of Cantaloupe shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Paysign has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Cantaloupe has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paysign	9.21%	17.81%	3.72%
Cantaloupe	17.32%	8.76%	5.73%

Summary

Cantaloupe beats Paysign on 8 of the 14 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 Cantaloupe

Cantaloupe, Inc., a digital payments and software services company, provides technology solutions for self-service commerce market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides G11 cashless and pulse kits that are 4G LTE digital payment devices for payment and consumer engagement applications; G11 chip kit, a digital reader that accepts contact EMV and contactless EMV payment methods; Engage series comprising Engage and Engage Combo, which are digital touchscreen devices that offers networking, security, and interactivity payment methods; and card touchscreen card readers, including P66, P100, P100Pro, and P30. In addition, the company offers self-checkout kiosks,?smart store?concepts, and the Cantaloupe Go management platform comprising Go Mini, Go MiniX, Go Plus100, Go Plus200, Go Plus300, Go Max, Cooler Cafe, and Smart Market; Go Portal, a robust cloud-based platform; and Cheq products, which supports attended and unattended self-service kiosks for the stadium, entertainment, and festival sectors. Further, it provides integrated software services for payment or asset tracking devices in the field to connect into platform for advanced data management, analytics, route scheduling, and loyalty and reward programs; and a range of self-service hardware solutions for vending, micro-markets, amusement, arcade, commercial laundry, air/vacuum, car wash, and other applications. Additionally, the company offers professional, network infrastructure, card processing, and customer/consumer services. Cantaloupe, Inc. was formerly known as USA Technologies, Inc. The company was incorporated in 1992 and is headquartered in Malvern, Pennsylvania.