Financial Review: Paypoint (OTCMKTS:PYPTF) and Nayax (NASDAQ:NYAX)

Nayax (NASDAQ:NYAX) and Paypoint (OTCMKTS:PYPTF) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Insider and Institutional Ownership

34.9% of Nayax shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Nayax and Paypoint, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nayax	2	2	3	0	2.14
Paypoint	0	0	0	0	0.00

Nayax presently has a consensus target price of $49.00, suggesting a potential downside of 11.87%. Given Nayax’s stronger consensus rating and higher possible upside, analysts clearly believe Nayax is more favorable than Paypoint.

Profitability

This table compares Nayax and Paypoint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nayax	6.49%	6.51%	2.17%
Paypoint	N/A	N/A	N/A

Volatility & Risk

Nayax has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500. Comparatively, Paypoint has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Valuation and Earnings

This table compares Nayax and Paypoint”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nayax	$314.01 million	6.28	-$5.63 million	$0.64	86.88
Paypoint	$391.23 million	1.17	$24.49 million	N/A	N/A

Paypoint has higher revenue and earnings than Nayax.

Summary

Nayax beats Paypoint on 8 of the 11 factors compared between the two stocks.

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.

About Paypoint

PayPoint plc engages in the provision of payments and banking, shopping, and e-commerce services and products in the United Kingdom. The company operates through two segments: PayPoint and Love2shop. The PayPoint segment provides card payment services to retailers, including leased payment devices; EPoS; ATM cash machines; SIM cards sales; receipt advertising; bill payment services and cash top-ups to individual consumers; parcel delivery and collection services; retailer service fees solutions; and digital payment services, as well as cash through to digital services. The segment offers its products under PayPoint One, eMoney, MultiPay, CashOut, and Direct Debits platforms. The Love2shop segment is involved in the provision of shopping vouchers, cards, and e-codes which customers may redeem with participating retailers; and Christmas savings club, to which customers make regular payments throughout the year to help spread the cost of Christmas, before converting to a voucher. It serves consumers, SMEs, and convenience retailers in the commercial, not-for-profit, and public sectors. The company was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.