Analyzing Paymentus (NYSE:PAY) & RB Global (NYSE:RBA)

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

Analyst Recommendations

This is a summary of recent recommendations for RB Global and Paymentus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RB Global	0	2	6	0	2.75
Paymentus	0	4	4	0	2.50

RB Global currently has a consensus price target of $122.88, indicating a potential upside of 16.62%. Paymentus has a consensus price target of $37.50, indicating a potential upside of 19.15%. Given Paymentus’ higher possible upside, analysts plainly believe Paymentus is more favorable than RB Global.

Insider and Institutional Ownership

95.4% of RB Global shares are owned by institutional investors. Comparatively, 78.4% of Paymentus shares are owned by institutional investors. 4.3% of RB Global shares are owned by insiders. Comparatively, 75.4% of Paymentus shares are owned by 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 RB Global and Paymentus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RB Global	9.65%	9.66%	4.31%
Paymentus	5.29%	12.68%	10.68%

Volatility and Risk

RB Global has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Paymentus has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Earnings & Valuation

This table compares RB Global and Paymentus”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RB Global	$4.28 billion	4.57	$413.10 million	$2.09	50.41
Paymentus	$871.74 million	4.53	$44.17 million	$0.46	68.42

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

Summary

RB Global beats Paymentus on 8 of the 14 factors compared between the two stocks.

About RB Global

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.

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.