Analyzing Repay (NASDAQ:RPAY) and Pax Global Tech (OTCMKTS:PXGYF)

Repay (NASDAQ:RPAY) and Pax Global Tech (OTCMKTS:PXGYF) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Profitability

This table compares Repay and Pax Global Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Repay	-83.01%	9.30%	4.26%
Pax Global Tech	N/A	N/A	N/A

Valuation & Earnings

This table compares Repay and Pax Global Tech”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repay	$309.26 million	1.17	-$256.72 million	($3.03)	-1.31
Pax Global Tech	$753.27 million	0.74	$96.68 million	N/A	N/A

Pax Global Tech has higher revenue and earnings than Repay.

Insider & Institutional Ownership

82.7% of Repay shares are held by institutional investors. 12.0% of Repay shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Repay and Pax Global Tech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repay	1	5	3	0	2.22
Pax Global Tech	0	0	0	0	0.00

Repay presently has a consensus target price of $5.53, indicating a potential upside of 39.68%. Given Repay’s stronger consensus rating and higher possible upside, analysts clearly believe Repay is more favorable than Pax Global Tech.

Volatility and Risk

Repay has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, Pax Global Tech has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Summary

Repay beats Pax Global Tech on 9 of the 12 factors compared between the two stocks.

About Repay

Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit card processing, automated clearing house (ACH) processing, e-cash, and digital wallet services; virtual credit card processing, enhanced ACH processing, instant funding, clearing and settlement, and communication solutions; and proprietary payment channels that include Web-based, virtual terminal, online client portal, mobile application, text-to-pay, interactive voice response, and point of sale services. It serves customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.

About Pax Global Tech

PAX Global Technology Limited, an investment holding company, develops and sells electronic funds transfer point-of-sale products in Hong Kong, the People's Republic of China, the United States, and Italy. Its E-payment terminal products include smart E-payment solutions; and android smartPOS, android smart tablet, unattended payment products, PINpad, and Minipigs and mPOS. The company also develops MAXSTORE, a cloud-based Software as a Service platform that provides one-stop terminal management and valu-added services; paxRhino, a key injection service; and CyberLab, a payment application cloud test platform that provides professional one-stop online debugging and testing service. In addition, it offers payment solutions services, and maintenance and installation services. PAX Global Technology Limited was founded in 2000 and is headquartered in Wan Chai, Hong Kong.