Analyzing Paysafe (NYSE:PSFE) & Paysign (NASDAQ:PAYS)

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

Insider and Institutional Ownership

54.4% of Paysafe shares are owned by institutional investors. Comparatively, 25.9% of Paysign shares are owned by institutional investors. 24.5% of Paysign shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Paysafe and Paysign’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysafe	-10.73%	11.55%	1.83%
Paysign	9.21%	17.19%	3.41%

Analyst Ratings

This is a summary of current recommendations and price targets for Paysafe and Paysign, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysafe	2	4	1	0	1.86
Paysign	0	1	3	0	2.75

Paysafe presently has a consensus target price of $9.81, suggesting a potential upside of 6.43%. Paysign has a consensus target price of $9.42, suggesting a potential upside of 49.23%. Given Paysign’s stronger consensus rating and higher possible upside, analysts clearly believe Paysign is more favorable than Paysafe.

Risk & Volatility

Paysafe has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Paysign has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Earnings and Valuation

This table compares Paysafe and Paysign”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysafe	$1.70 billion	0.28	-$182.51 million	($3.15)	-2.93
Paysign	$82.03 million	4.25	$7.55 million	$0.13	48.54

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

Summary

Paysign beats Paysafe on 11 of the 14 factors compared between the two stocks.

About Paysafe

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.

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.