Paysign (NASDAQ:PAYS) versus Sparta Commercial Services (OTCMKTS:SRCO) Critical Analysis

Paysign (NASDAQ:PAYS) and Sparta Commercial Services (OTCMKTS:SRCO) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Volatility & Risk

Paysign has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Sparta Commercial Services has a beta of -0.42, meaning that its share price is 142% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Paysign and Sparta Commercial Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysign	0	0	2	0	3.00
Sparta Commercial Services	0	0	0	0	N/A

Paysign currently has a consensus price target of $5.50, indicating a potential upside of 16.28%. Given Paysign’s higher probable upside, equities research analysts plainly believe Paysign is more favorable than Sparta Commercial Services.

Insider & Institutional Ownership

25.9% of Paysign shares are owned by institutional investors. 23.4% of Paysign shares are owned by insiders. Comparatively, 0.5% of Sparta Commercial Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Paysign and Sparta Commercial Services’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysign	$47.27 million	5.30	$6.46 million	$0.12	39.42
Sparta Commercial Services	$260,000.00	12.48	$1.02 million	N/A	N/A

Paysign has higher revenue and earnings than Sparta Commercial Services.

Profitability

This table compares Paysign and Sparta Commercial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysign	13.66%	34.33%	5.36%
Sparta Commercial Services	-1,870.68%	N/A	-22,297.00%

Summary

Paysign beats Sparta Commercial Services on 10 of the 11 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 Sparta Commercial Services

Sparta Commercial Services, Inc. develops, markets, and manages business websites and mobile applications for smartphones and tablets under the iMobileApp name. It offers mobile applications for vehicle dealerships, racetracks, private clubs, country clubs, schools and entertainment venues, restaurants, grocery stores, and various other merchant types. The company also owns and manages websites, which sell motorcycle, recreational vehicle, and truck title history reports for consumers, retailers, municipals, nonprofits, auction houses, banks, and insurance companies; and designs, launches, maintains, and hosts websites for businesses, as well as provides text messaging services. In addition, it offers eCommerce, customer relationship management development and integration, search engine optimization, social media marketing, and online reviews website services to its clients. Further, the company provides an equipment-leasing product for local and state agencies that helps to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment; and a range of hemp-derived cannabinol products through newworldhealthcbd.com. The company was incorporated in 1980 and is headquartered in New York, New York.