Usio (NASDAQ:USIO) vs. Repay (NASDAQ:RPAY) Head to Head Survey

Usio (NASDAQ:USIO) and Repay (NASDAQ:RPAY) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Usio and Repay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Usio	-2.43%	-11.73%	-1.86%
Repay	-82.73%	10.45%	4.56%

Earnings and Valuation

This table compares Usio and Repay”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Usio	$88.85 million	0.49	-$2.51 million	($0.08)	-19.88
Repay	$312.73 million	1.14	-$256.72 million	($3.06)	-1.23

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Usio and Repay, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Usio	2	1	2	0	2.00
Repay	1	4	3	0	2.25

Usio currently has a consensus target price of $5.13, indicating a potential upside of 222.33%. Repay has a consensus target price of $5.54, indicating a potential upside of 47.62%. Given Usio’s higher probable upside, equities research analysts plainly believe Usio is more favorable than Repay.

Volatility and Risk

Usio has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Repay has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500.

Insider & Institutional Ownership

20.2% of Usio shares are held by institutional investors. Comparatively, 82.7% of Repay shares are held by institutional investors. 19.0% of Usio shares are held by company insiders. Comparatively, 12.0% of Repay shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Repay beats Usio on 9 of the 14 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 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.