Usio (NASDAQ:USIO – Get Free Report) and Nayax (NASDAQ:NYAX – Get Free Report) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Profitability
This table compares Usio and Nayax’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Usio | -0.46% | -2.05% | -0.37% |
| Nayax | 6.49% | 6.51% | 2.17% |
Analyst Ratings
This is a summary of current recommendations for Usio and Nayax, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Usio | 2 | 1 | 1 | 0 | 1.75 |
| Nayax | 1 | 3 | 3 | 0 | 2.29 |
Insider and Institutional Ownership
20.2% of Usio shares are owned by institutional investors. Comparatively, 34.9% of Nayax shares are owned by institutional investors. 17.8% of Usio shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Usio has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Nayax has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500.
Valuation and Earnings
This table compares Usio and Nayax”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Usio | $82.93 million | 0.44 | $3.31 million | ($0.02) | -67.50 |
| Nayax | $314.01 million | 5.96 | -$5.63 million | $0.64 | 79.92 |
Usio has higher earnings, but lower revenue than Nayax. Usio is trading at a lower price-to-earnings ratio than Nayax, indicating that it is currently the more affordable of the two stocks.
Summary
Nayax beats Usio on 10 of the 14 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 Nayax
Nayax Ltd., a fintech company, operates system and payment platform for multiple retailers in the United States, Europe, the United Kingdom, Australia, Israel, and rest of the world. The company offers AMIT 3.0, a machine-to-machine vending telemetry solution; Nayax Core, a management and monitoring software for vending machines and other unattended machines; MoMa, a mobile app for unattended machine; Tigapo back-office software suite, a cloud-based platform; EV Core, a smart, cloud-based management platform; Retail Management Cloud, a comprehensive attended retail management platform; Loyalty and Marketing Suite, a consumer engagement marketing and loyalty platform; Monyx Wallet, a digital wallet app enabling cashless payments with mobile phones; Weezmo, a consumer engagement and marketing platform; and Tigapo app, a proprietary mobile app to help family entertainment center businesses. It provides electric vehicle charging stations; VPOS Touch, a credit card reader cashless payment device; VPOS Fusion, a cashless payment card reader; ONYX, a contactless card reader and telemetry device; NOVA 156, an electronic cash register; DOT, a smart QR and barcode reader; UNO Plus and UNO 8, which are EMV and FeliCa contactless readers; EMV SOM, a PCI-PTS ready contactless EMV reader module; Nova Market, a cashless micro market and self-checkout solution; NOVA 55, an a handheld smart point of sale (POS) device; NOVA 45, a handheld mini smart terminals for attended POS; and Retail One, a universal retail solution that integrates directly with SAP. The company sells its products directly, as well as through resellers and distributors. It serves various verticals, including vending machines, coffee machines, unattended checkout counters, self-service kiosks, ticketing machines, car wash stations, gaming machines, amusement rides, laundromats, and EV charging stations. Nayax Ltd. was incorporated in 2005 and is headquartered in Herzliya, Israel.
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