Head to Head Review: Repay (NASDAQ:RPAY) versus Remitly Global (NASDAQ:RELY)

Remitly Global (NASDAQ:RELY) and Repay (NASDAQ:RPAY) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Risk & Volatility

Remitly Global has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Repay has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Remitly Global and Repay, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Remitly Global	1	1	8	0	2.70
Repay	1	5	4	0	2.30

Remitly Global currently has a consensus price target of $27.88, suggesting a potential upside of 73.78%. Repay has a consensus price target of $7.22, suggesting a potential upside of 37.57%. Given Remitly Global’s stronger consensus rating and higher possible upside, analysts plainly believe Remitly Global is more favorable than Repay.

Institutional & Insider Ownership

74.3% of Remitly Global shares are owned by institutional investors. Comparatively, 82.7% of Repay shares are owned by institutional investors. 7.5% of Remitly Global shares are owned by company insiders. Comparatively, 12.0% of Repay shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Remitly Global	0.96%	2.31%	1.51%
Repay	-35.79%	8.89%	4.31%

Earnings & Valuation

This table compares Remitly Global and Repay”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Remitly Global	$1.26 billion	2.62	-$36.98 million	$0.06	267.33
Repay	$313.04 million	1.53	-$10.16 million	($1.26)	-4.17

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

Summary

Remitly Global beats Repay on 8 of the 14 factors compared between the two stocks.

About Remitly Global

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.

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.