Financial Analysis: Paymentus (NYSE:PAY) and Payoneer Global (NASDAQ:PAYO)

Payoneer Global (NASDAQ:PAYO) and Paymentus (NYSE:PAY) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Valuation & Earnings

This table compares Payoneer Global and Paymentus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Payoneer Global	$977.72 million	1.98	$121.16 million	$0.19	28.26
Paymentus	$871.74 million	5.38	$44.17 million	$0.46	81.37

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

Institutional and Insider Ownership

82.2% of Payoneer Global shares are owned by institutional investors. Comparatively, 78.4% of Paymentus shares are owned by institutional investors. 2.6% of Payoneer Global shares are owned by insiders. Comparatively, 87.8% of Paymentus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Payoneer Global and Paymentus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Payoneer Global	0	2	7	0	2.78
Paymentus	0	5	4	0	2.44

Payoneer Global currently has a consensus price target of $9.57, indicating a potential upside of 78.24%. Paymentus has a consensus price target of $37.00, indicating a potential downside of 1.15%. Given Payoneer Global’s stronger consensus rating and higher possible upside, research analysts clearly believe Payoneer Global is more favorable than Paymentus.

Risk and Volatility

Payoneer Global has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Paymentus has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Profitability

This table compares Payoneer Global and Paymentus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Payoneer Global	6.96%	10.71%	1.01%
Paymentus	5.29%	12.68%	10.68%

About Payoneer Global

Payoneer Global Inc. operates as a financial technology company. It operates a payment infrastructure platform that provides customers with a one-stop, global, multi-currency account to serve their accounts receivable and accounts payable needs. The company delivers a suite of services that includes cross-border payments, physical and virtual MasterCard cards, working capital, risk management, and other services. It also offers various payment options with minimal integration required, full back-office functions, and customer support offered. The company's platform delivers bank-grade security, stability, and redundancy. It serves customers, such as small and medium-sized businesses in approximately 190 countries and territories worldwide. Payoneer Global Inc. was founded in 2005 and is headquartered in New York, New York.

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.