Financial Review: Paymentus (PAY) & Its Peers

Paymentus (NYSE:PAY) is one of 342 publicly-traded companies in the “Financial Services” industry, but how does it contrast to its rivals? We will compare Paymentus to related companies based on the strength of its earnings, profitability, dividends, analyst recommendations, institutional ownership, risk and valuation.

Earnings & Valuation

This table compares Paymentus and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Paymentus	$1.20 billion	$66.94 million	49.61
Paymentus Competitors	$6.30 billion	$1.07 billion	8.36

Paymentus’ rivals have higher revenue and earnings than Paymentus. Paymentus is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

78.4% of Paymentus shares are held by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are held by institutional investors. 55.7% of Paymentus shares are held by company insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are held by company 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.

Profitability

This table compares Paymentus and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paymentus	6.24%	15.26%	12.80%
Paymentus Competitors	-409.62%	-15.98%	-6.09%

Volatility & Risk

Paymentus has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Paymentus’ rivals have a beta of 2.49, indicating that their average stock price is 149% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Paymentus and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	4	3	2	2.78
Paymentus Competitors	1966	6868	11617	443	2.50

Paymentus currently has a consensus price target of $38.86, indicating a potential upside of 18.68%. As a group, “Financial Services” companies have a potential downside of 1.58%. Given Paymentus’ stronger consensus rating and higher possible upside, analysts clearly believe Paymentus is more favorable than its rivals.

Summary

Paymentus beats its rivals on 9 of the 13 factors compared.

Paymentus Company Profile

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.