Paysafe (PSFE) and Its Competitors Critical Comparison

Paysafe (NYSE:PSFE) is one of 341 publicly-traded companies in the “Financial Services” industry, but how does it weigh in compared to its competitors? We will compare Paysafe to similar businesses based on the strength of its risk, earnings, dividends, analyst recommendations, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares Paysafe and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Paysafe	$1.70 billion	-$182.51 million	-1.85
Paysafe Competitors	$6.73 billion	$1.10 billion	10.10

Paysafe’s competitors have higher revenue and earnings than Paysafe. Paysafe is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

54.4% of Paysafe shares are owned by institutional investors. Comparatively, 43.2% of shares of all “Financial Services” companies are owned by institutional investors. 22.0% of shares of all “Financial Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Paysafe and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysafe	-11.82%	10.31%	1.41%
Paysafe Competitors	-412.58%	-39.71%	-5.80%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Paysafe and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysafe	3	2	1	0	1.67
Paysafe Competitors	1989	6952	11724	446	2.50

Paysafe presently has a consensus price target of $8.50, suggesting a potential upside of 20.48%. As a group, “Financial Services” companies have a potential downside of 6.81%. Given Paysafe’s higher possible upside, equities analysts clearly believe Paysafe is more favorable than its competitors.

Volatility and Risk

Paysafe has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, Paysafe’s competitors have a beta of 2.51, meaning that their average share price is 151% more volatile than the S&P 500.

Summary

Paysafe competitors beat Paysafe on 8 of the 13 factors compared.

About Paysafe

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.