Reviewing Paysign (NASDAQ:PAYS) & PAR Technology (NYSE:PAR)

Paysign (NASDAQ:PAYS) and PAR Technology (NYSE:PAR) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Earnings & Valuation

This table compares Paysign and PAR Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysign	$91.47 million	4.05	$7.55 million	$0.17	38.98
PAR Technology	$455.55 million	1.20	-$84.46 million	($1.87)	-7.11

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

Insider and Institutional Ownership

25.9% of Paysign shares are owned by institutional investors. 24.5% of Paysign shares are owned by insiders. Comparatively, 2.3% of PAR Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Paysign has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, PAR Technology has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Paysign and PAR Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysign	0	1	2	0	2.67
PAR Technology	2	1	5	0	2.38

Paysign currently has a consensus price target of $10.00, suggesting a potential upside of 50.92%. PAR Technology has a consensus price target of $28.00, suggesting a potential upside of 110.54%. Given PAR Technology’s higher possible upside, analysts plainly believe PAR Technology is more favorable than Paysign.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paysign	11.38%	21.74%	4.19%
PAR Technology	-16.04%	-2.57%	-1.56%

Summary

Paysign beats PAR Technology on 10 of the 14 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 PAR Technology

PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and kitchen display systems, payment devices, cash drawers, printers, and other peripherals. In addition, this segment provides services, such as hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services comprising inside and outside plant services, and maintenance of infrastructure and information systems; satellite ground system support comprising operations and maintenance, sustainment, upgrades, communications security management, anomaly response/resolution, process improvement, emergency response, and disaster recovery services; and information technology infrastructure library services to the United States Department of Defense, intelligence community (IC), and other federal agencies. This segment also offers various IC support services, systems integration, situational awareness solutions, and mission readiness support services. The company was founded in 1968 and is based in New Hartford, New York.