SHF (NASDAQ:SHFS – Get Free Report) and Repay (NASDAQ:RPAY – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Earnings and Valuation
This table compares SHF and Repay”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SHF | $7.67 million | 0.01 | -$2.16 million | ($11.88) | -0.01 |
| Repay | $309.26 million | 1.30 | -$256.72 million | ($2.04) | -2.06 |
SHF has higher earnings, but lower revenue than Repay. Repay is trading at a lower price-to-earnings ratio than SHF, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SHF and Repay’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SHF | -47.33% | -90.25% | -41.71% |
| Repay | -49.57% | 11.03% | 4.28% |
Risk & Volatility
SHF has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Repay has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for SHF and Repay, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SHF | 1 | 0 | 0 | 0 | 1.00 |
| Repay | 1 | 3 | 3 | 0 | 2.29 |
Repay has a consensus target price of $5.25, indicating a potential upside of 24.70%. Given Repay’s stronger consensus rating and higher possible upside, analysts plainly believe Repay is more favorable than SHF.
Institutional & Insider Ownership
29.2% of SHF shares are owned by institutional investors. Comparatively, 82.7% of Repay shares are owned by institutional investors. 5.8% of SHF shares are owned by insiders. Comparatively, 12.0% of Repay shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Repay beats SHF on 11 of the 13 factors compared between the two stocks.
About SHF
SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.
About Repay
Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit card processing, automated clearing house (ACH) processing, e-cash, and digital wallet services; virtual credit card processing, enhanced ACH processing, instant funding, clearing and settlement, and communication solutions; and proprietary payment channels that include Web-based, virtual terminal, online client portal, mobile application, text-to-pay, interactive voice response, and point of sale services. It serves customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.
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