Paypoint (OTCMKTS:PYPTF) & Paysign (NASDAQ:PAYS) Critical Review

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paypoint	$391.23 million	1.26	$24.49 million	N/A	N/A
Paysign	$82.03 million	4.61	$7.55 million	$0.13	52.69

Paypoint has higher revenue and earnings than Paysign.

Profitability

This table compares Paypoint and Paysign’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
Paysign	9.21%	17.19%	3.41%

Insider & Institutional Ownership

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

Volatility & Risk

Paypoint has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Paysign has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Paypoint and Paysign, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paypoint	0	0	0	0	0.00
Paysign	0	1	3	0	2.75

Paysign has a consensus target price of $9.42, suggesting a potential upside of 37.47%. Given Paysign’s stronger consensus rating and higher probable upside, analysts clearly believe Paysign is more favorable than Paypoint.

Summary

Paysign beats Paypoint on 10 of the 12 factors compared between the two stocks.

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 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.