Contrasting Nayax (NASDAQ:NYAX) & Paysign (NASDAQ:PAYS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nayax	6.95%	14.09%	4.30%
Paysign	11.38%	21.74%	4.19%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nayax	$400.43 million	5.80	$35.52 million	$0.79	80.24
Paysign	$82.03 million	3.83	$7.55 million	$0.17	33.06

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

Analyst Ratings

This is a summary of recent ratings and target prices for Nayax and Paysign, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nayax	2	2	2	0	2.00
Paysign	0	1	2	0	2.67

Nayax currently has a consensus price target of $74.27, indicating a potential upside of 17.16%. Paysign has a consensus price target of $10.00, indicating a potential upside of 77.94%. Given Paysign’s stronger consensus rating and higher possible upside, analysts plainly believe Paysign is more favorable than Nayax.

Risk and Volatility

Nayax has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Paysign has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Institutional and Insider Ownership

34.9% of Nayax shares are held by institutional investors. Comparatively, 25.9% of Paysign shares are held by institutional investors. 24.5% of Paysign shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Nayax beats Paysign on 7 of the 13 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 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.