Contrasting Shift4 Payments (NYSE:FOUR) and Remitly Global (NASDAQ:RELY)

Shift4 Payments (NYSE:FOUR) and Remitly Global (NASDAQ:RELY) are both mid-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Shift4 Payments and Remitly Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shift4 Payments	$3.33 billion	2.04	$229.60 million	$2.70	28.40
Remitly Global	$1.26 billion	2.77	-$36.98 million	$0.06	282.50

Shift4 Payments has higher revenue and earnings than Remitly Global. Shift4 Payments is trading at a lower price-to-earnings ratio than Remitly Global, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Shift4 Payments has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Remitly Global has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Shift4 Payments and Remitly Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shift4 Payments	0	7	14	2	2.78
Remitly Global	1	2	8	0	2.64

Shift4 Payments currently has a consensus price target of $108.60, indicating a potential upside of 41.63%. Remitly Global has a consensus price target of $27.25, indicating a potential upside of 60.77%. Given Remitly Global’s higher probable upside, analysts plainly believe Remitly Global is more favorable than Shift4 Payments.

Profitability

This table compares Shift4 Payments and Remitly Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shift4 Payments	6.11%	37.05%	6.88%
Remitly Global	0.96%	2.31%	1.51%

Institutional & Insider Ownership

98.9% of Shift4 Payments shares are owned by institutional investors. Comparatively, 74.3% of Remitly Global shares are owned by institutional investors. 25.2% of Shift4 Payments shares are owned by insiders. Comparatively, 8.1% of Remitly Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Shift4 Payments beats Remitly Global on 12 of the 15 factors compared between the two stocks.

About Shift4 Payments

Shift4 Payments, Inc. (NYSE FOUR) provides integrated payment processing and technology solutions in the United States. Its payments platform provides omni-channel card acceptance and processing solutions, including end-to-end payment processing for various payment types; merchant acquiring; proprietary omni-channel gateway; complementary software integrations; integrated and mobile point-of-sale (POS) solutions; security and risk management solutions; and reporting and analytical tools, as well as tokenization, risk management/underwriting, payment device and chargeback management, fraud prevention, and gift card solutions. The company also offers suite of technology solutions, such as Lighthouse, a cloud-based business intelligence tool that includes customer engagement, social media management, online reputation management, scheduling, and product pricing, as well as reporting and analytics; integrated POS for merchants business; and Skytab, a mobile payment solution. In addition, it provides marketplace technology that enable seamless integrations into third-party applications, which includes online delivery services, payroll, timekeeping, and other human resource services. Further, the company offers merchant management, training and education, marketing management, and incentives tracking solutions. Additionally, it provides merchant underwriting, onboarding and activation, training, risk management, and support services; and software integrations and compliance management, and partner support and services. The company was founded in 1998 and is headquartered in Allentown, Pennsylvania.

About Remitly Global

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.