Usio (NASDAQ:USIO – Get Free Report) and XBP Global (NASDAQ:XBP – Get Free Report) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.
Profitability
This table compares Usio and XBP Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Usio | -2.94% | -13.52% | -2.22% |
| XBP Global | 139.50% | 2,609.22% | 214.88% |
Analyst Ratings
This is a summary of current ratings and price targets for Usio and XBP Global, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Usio | 3 | 0 | 1 | 0 | 1.50 |
| XBP Global | 1 | 0 | 1 | 0 | 2.00 |
Institutional and Insider Ownership
20.2% of Usio shares are owned by institutional investors. Comparatively, 15.7% of XBP Global shares are owned by institutional investors. 17.8% of Usio shares are owned by company insiders. Comparatively, 10.5% of XBP Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Usio and XBP Global”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Usio | $85.39 million | 0.42 | -$2.51 million | ($0.09) | -14.56 |
| XBP Global | $791.04 million | 0.04 | $1.10 billion | ($2.20) | -1.32 |
XBP Global has higher revenue and earnings than Usio. Usio is trading at a lower price-to-earnings ratio than XBP Global, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Usio has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, XBP Global has a beta of -0.39, suggesting that its stock price is 139% less volatile than the S&P 500.
Summary
XBP Global beats Usio on 7 of the 13 factors compared between the two stocks.
About Usio
Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check and Check Conversion for electronic payment facilitation. In addition, the company offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. Further, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Additionally, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through the internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.
About XBP Global
XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.
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