Analyzing Green Dot (NYSE:GDOT) and Repay (NASDAQ:RPAY)

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

Analyst Ratings

This is a summary of recent ratings and price targets for Green Dot and Repay, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Dot	1	3	1	1	2.33
Repay	1	4	3	0	2.25

Green Dot currently has a consensus target price of $14.75, suggesting a potential upside of 16.11%. Repay has a consensus target price of $5.32, suggesting a potential upside of 53.36%. Given Repay’s higher possible upside, analysts clearly believe Repay is more favorable than Green Dot.

Volatility & Risk

Green Dot has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Repay has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Valuation & Earnings

This table compares Green Dot and Repay”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Dot	$2.08 billion	0.35	-$98.87 million	($1.32)	-9.62
Repay	$309.26 million	1.07	-$256.72 million	($3.06)	-1.13

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

Institutional & Insider Ownership

92.6% of Green Dot shares are owned by institutional investors. Comparatively, 82.7% of Repay shares are owned by institutional investors. 1.4% of Green Dot 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, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Green Dot	-3.25%	7.56%	1.16%
Repay	-82.73%	10.45%	4.56%

Summary

Repay beats Green Dot on 8 of the 15 factors compared between the two stocks.

About Green Dot

Green Dot Corporation, a financial technology and registered bank holding company, provides various financial services to consumers and businesses in the United States. It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. The company provides deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs. It offers money processing services, such as cash transfer services that enable consumers to deposit or pick up cash and pay bills with cash at the point-of-sale at any participating retailer; and simply paid disbursement services, which enable wages and authorized funds disbursement to its deposit account programs and accounts issued by any third-party bank or program manager. In addition, the company offers tax processing services comprising tax refund transfers, which provide the processing technology to facilitate receipt of a taxpayers' refund proceeds; small business lending to independent tax preparation providers that seek small advances; and fast cash advance, a loan that enables tax refund recipients. Green Dot Corporation was incorporated in 1999 and is headquartered in Austin, 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.