Paymentus (NYSE:PAY – Get Free Report) and Global Payments (NYSE:GPN – Get Free Report) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Insider and Institutional Ownership
78.4% of Paymentus shares are owned by institutional investors. Comparatively, 89.8% of Global Payments shares are owned by institutional investors. 87.8% of Paymentus shares are owned by company insiders. Comparatively, 0.6% of Global Payments shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Paymentus has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Global Payments has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Paymentus | $1.20 billion | 2.54 | $66.94 million | $0.57 | 42.38 |
| Global Payments | $7.71 billion | 2.58 | $1.40 billion | ($2.04) | -35.61 |
Global Payments has higher revenue and earnings than Paymentus. Global Payments is trading at a lower price-to-earnings ratio than Paymentus, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Paymentus and Global Payments, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paymentus | 0 | 3 | 3 | 1 | 2.71 |
| Global Payments | 3 | 18 | 5 | 0 | 2.08 |
Paymentus currently has a consensus target price of $35.20, indicating a potential upside of 45.71%. Global Payments has a consensus target price of $83.87, indicating a potential upside of 15.45%. Given Paymentus’ stronger consensus rating and higher possible upside, analysts clearly believe Paymentus is more favorable than Global Payments.
Profitability
This table compares Paymentus and Global Payments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Paymentus | 5.78% | 13.75% | 11.53% |
| Global Payments | -7.99% | 13.11% | 5.79% |
Summary
Paymentus beats Global Payments on 10 of the 15 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 Global Payments
Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, account payables, and electronic payment alternatives solutions for businesses and governments. It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations. The company was founded in 1967 and is headquartered in Atlanta, Georgia.
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