Comparing Repay (NASDAQ:RPAY) & Cantaloupe (NASDAQ:CTLP)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cantaloupe	$312.57 million	2.49	$64.53 million	$0.79	13.35
Repay	$313.04 million	1.11	-$10.16 million	($1.26)	-3.02

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cantaloupe and Repay, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cantaloupe	2	5	2	0	2.00
Repay	1	5	4	0	2.30

Cantaloupe currently has a consensus price target of $12.55, suggesting a potential upside of 18.96%. Repay has a consensus price target of $7.22, suggesting a potential upside of 90.06%. Given Repay’s stronger consensus rating and higher probable upside, analysts plainly believe Repay is more favorable than Cantaloupe.

Volatility & Risk

Cantaloupe has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Repay has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.

Insider and Institutional Ownership

75.8% of Cantaloupe shares are owned by institutional investors. Comparatively, 82.7% of Repay shares are owned by institutional investors. 7.1% of Cantaloupe shares are owned by company insiders. Comparatively, 12.0% of Repay shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cantaloupe	21.33%	10.43%	6.62%
Repay	-35.79%	8.89%	4.31%

About Cantaloupe

Cantaloupe, Inc., a digital payments and software services company, provides technology solutions for self-service commerce market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides G11 cashless and pulse kits that are 4G LTE digital payment devices for payment and consumer engagement applications; G11 chip kit, a digital reader that accepts contact EMV and contactless EMV payment methods; Engage series comprising Engage and Engage Combo, which are digital touchscreen devices that offers networking, security, and interactivity payment methods; and card touchscreen card readers, including P66, P100, P100Pro, and P30. In addition, the company offers self-checkout kiosks,?smart store?concepts, and the Cantaloupe Go management platform comprising Go Mini, Go MiniX, Go Plus100, Go Plus200, Go Plus300, Go Max, Cooler Cafe, and Smart Market; Go Portal, a robust cloud-based platform; and Cheq products, which supports attended and unattended self-service kiosks for the stadium, entertainment, and festival sectors. Further, it provides integrated software services for payment or asset tracking devices in the field to connect into platform for advanced data management, analytics, route scheduling, and loyalty and reward programs; and a range of self-service hardware solutions for vending, micro-markets, amusement, arcade, commercial laundry, air/vacuum, car wash, and other applications. Additionally, the company offers professional, network infrastructure, card processing, and customer/consumer services. Cantaloupe, Inc. was formerly known as USA Technologies, Inc. The company was incorporated in 1992 and is headquartered in Malvern, Pennsylvania.

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.