Comparing Expensify (NASDAQ:EXFY) and Paypoint (OTCMKTS:PYPTF)

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

Institutional & Insider Ownership

68.4% of Expensify shares are held by institutional investors. 17.3% of Expensify shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paypoint	N/A	N/A	N/A
Expensify	-10.83%	-11.75%	-8.46%

Valuation and Earnings

This table compares Paypoint and Expensify”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paypoint	$391.23 million	1.12	$24.49 million	N/A	N/A
Expensify	$139.24 million	0.71	-$10.06 million	($0.17)	-7.18

Paypoint has higher revenue and earnings than Expensify.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Paypoint and Expensify, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paypoint	0	0	0	0	0.00
Expensify	1	1	1	0	2.00

Expensify has a consensus target price of $3.50, indicating a potential upside of 186.89%. Given Expensify’s stronger consensus rating and higher possible upside, analysts plainly believe Expensify is more favorable than Paypoint.

Risk and Volatility

Paypoint has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Expensify has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

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.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.