Paysign (NASDAQ:PAYS – Get Free Report) and Priority Technology (NASDAQ:PRTH – Get Free Report) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Paysign and Priority Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Paysign | 14.28% | 30.64% | 4.82% |
| Priority Technology | 1.96% | -15.86% | 1.52% |
Insider & Institutional Ownership
25.9% of Paysign shares are held by institutional investors. Comparatively, 11.5% of Priority Technology shares are held by institutional investors. 22.4% of Paysign shares are held by company insiders. Comparatively, 76.3% of Priority Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Paysign | $58.38 million | 2.61 | $6.46 million | $0.07 | 40.57 |
| Priority Technology | $898.61 million | 0.64 | -$1.31 million | ($0.11) | -65.50 |
Paysign has higher earnings, but lower revenue than Priority Technology. Priority Technology is trading at a lower price-to-earnings ratio than Paysign, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Paysign has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, Priority Technology has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Paysign and Priority Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paysign | 0 | 0 | 4 | 0 | 3.00 |
| Priority Technology | 0 | 0 | 3 | 1 | 3.25 |
Paysign presently has a consensus price target of $7.06, suggesting a potential upside of 148.68%. Priority Technology has a consensus price target of $13.00, suggesting a potential upside of 80.43%. Given Paysign’s higher probable upside, research analysts plainly believe Paysign is more favorable than Priority Technology.
Summary
Paysign beats Priority Technology on 10 of the 15 factors compared between the two stocks.
About Paysign
Paysign, Inc. provides prepaid card programs, comprehensive patient affordability offerings, digital banking services, and integrated payment processing services for businesses, consumers, and government institutions. Its product offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card. The company markets its prepaid card solutions under the Paysign brand. Its primary market focus is on companies and municipalities that require a streamlined payment solution for rewards, rebates, payment assistance, and other payments to their customers, employees, agents, and others. The company was formerly known as 3PEA International, Inc. and changed its name to Paysign, Inc. in April 2019. Paysign, Inc. was incorporated in 1995 and is headquartered in Henderson, Nevada.
About Priority Technology
Priority Technology Holdings, Inc. operates as a payment technology company in the United States. The company operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business (B2B) Payments, and Enterprise Payments. It offers SMB payments processing solutions for B2C transactions through independent sales organizations, financial institutions, independent software vendors, and other referral partners through its MX product suite, which includes MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing. The company also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, it provides curated managed services; payment-adjacent technologies to facilitate the acceptance of electronic payments from customers; and Plastiq payables management software, which helps businesses in improving cash flow with instant access to working capital. Further, the company offers embedded finance and BaaS solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. It serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. The company was founded in 2005 and is headquartered in Alpharetta, Georgia.
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