Head to Head Comparison: Paymentus (NYSE:PAY) vs. Finance of America Companies (NYSE:FOA)

Paymentus (NYSE:PAY) and Finance of America Companies (NYSE:FOA) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Paymentus and Finance of America Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paymentus	6.65%	16.14%	13.57%
Finance of America Companies	-0.10%	19.87%	0.25%

Earnings and Valuation

This table compares Paymentus and Finance of America Companies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paymentus	$1.20 billion	3.54	$66.94 million	$0.73	46.04
Finance of America Companies	$497.43 million	0.42	$45.24 million	($7.79)	-1.53

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

Volatility and Risk

Paymentus has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Finance of America Companies has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.

Institutional & Insider Ownership

78.4% of Paymentus shares are held by institutional investors. Comparatively, 97.2% of Finance of America Companies shares are held by institutional investors. 55.7% of Paymentus shares are held by insiders. Comparatively, 35.4% of Finance of America Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Paymentus and Finance of America Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	5	2	2	2.67
Finance of America Companies	1	2	2	0	2.20

Paymentus currently has a consensus target price of $38.86, indicating a potential upside of 15.61%. Finance of America Companies has a consensus target price of $30.50, indicating a potential upside of 155.55%. Given Finance of America Companies’ higher probable upside, analysts plainly believe Finance of America Companies is more favorable than Paymentus.

Summary

Paymentus beats Finance of America Companies on 10 of the 14 factors compared between the two stocks.

About Paymentus

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.

About Finance of America Companies

Finance of America Companies Inc. a financial service holding company, through its subsidiaries, engages in the operation of a retirement solutions platform in the United States. It operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment engages in the loan origination activities comprising home equity conversion, proprietary reverse, and hybrid mortgage loans for senior homeowners. The Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services for borrowers and investors. The company was founded in 2013 and is headquartered in Plano, Texas.