Critical Review: Paysign (NASDAQ:PAYS) vs. RB Global (NYSE:RBA)

Paysign (NASDAQ:PAYS) and RB Global (NYSE:RBA) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Institutional and Insider Ownership

25.9% of Paysign shares are held by institutional investors. Comparatively, 95.4% of RB Global shares are held by institutional investors. 24.5% of Paysign shares are held by insiders. Comparatively, 0.6% of RB Global 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.

Analyst Ratings

This is a summary of recent ratings for Paysign and RB Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysign	0	1	3	0	2.75
RB Global	0	1	7	0	2.88

Paysign presently has a consensus price target of $9.42, suggesting a potential upside of 49.71%. RB Global has a consensus price target of $125.13, suggesting a potential upside of 19.89%. Given Paysign’s higher probable upside, equities research analysts clearly believe Paysign is more favorable than RB Global.

Valuation and Earnings

This table compares Paysign and RB Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysign	$82.03 million	4.23	$7.55 million	$0.13	48.38
RB Global	$4.59 billion	4.23	$423.10 million	$2.04	51.16

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

Volatility and Risk

Paysign has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, RB Global has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paysign	9.21%	17.19%	3.41%
RB Global	9.33%	11.12%	5.01%

Summary

RB Global beats Paysign on 9 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 RB Global

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.