JetPay Corporation (NASDAQ: JTPY) and JG Wentworth (NYSE:JGW) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for JetPay Corporation and JG Wentworth, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JetPay Corporation 0 0 0 0 N/A
JG Wentworth 0 0 0 0 N/A

Institutional and Insider Ownership

13.2% of JetPay Corporation shares are held by institutional investors. 62.9% of JetPay Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

JetPay Corporation has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, JG Wentworth has a beta of 2, indicating that its stock price is 100% more volatile than the S&P 500.

Profitability

This table compares JetPay Corporation and JG Wentworth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JetPay Corporation -3.23% -11.45% -0.39%
JG Wentworth -15.57% N/A -0.96%

Valuation and Earnings

This table compares JetPay Corporation and JG Wentworth’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
JetPay Corporation $56.33 million 0.57 -$8.21 million ($0.74) -2.77
JG Wentworth N/A N/A N/A ($2.18) -0.21

JG Wentworth has higher revenue, but lower earnings than JetPay Corporation. JetPay Corporation is trading at a lower price-to-earnings ratio than JG Wentworth, indicating that it is currently the more affordable of the two stocks.

Summary

JetPay Corporation beats JG Wentworth on 6 of the 8 factors compared between the two stocks.

JetPay Corporation Company Profile

JetPay Corporation provides debit and credit card processing, payroll, human capital management (HCM) and card services to businesses and their employees in the United States. The company operates through two segments, JetPay Payment Processing and JetPay HR and Payroll. It offers debit and credit processing and automated clearing house payment services to small and medium-sized businesses, as well as to large entities, which processes Internet transactions and recurring billings; and HCM services, including payroll, tax filing, time and attendance, HR, and other related services to small and medium-sized employers. The company also provides transaction processing services, such as end-to-end encryption and tokenization; high speed network and authorization; batch processing; gift cards; fraud protection; and Website or payment application services; and MAGIC, a payments gateway that provides real-time integrated solutions to merchants. In addition, it provides low-cost money management and payment services to unbanked and under-banked employees through prepaid debit cards. The company was formerly known as Universal Business Payment Solutions Acquisition Corporation and changed its name to JetPay Corporation in August 2013. JetPay Corporation is headquartered in Center Valley, Pennsylvania.

JG Wentworth Company Profile

The J.G. Wentworth Company is a diversified financial services company. The Company focuses on providing solutions to consumers in need of cash. The Company conducts its operations through two segments: Structured Settlements and Annuity Purchasing (Structured Settlements), and Home Lending. The Structured Settlements segment provides liquidity to individuals with various financial assets, such as structured settlements, annuities, and lottery winnings, by either purchasing these financial assets for a lump-sum payment, issuing installment obligations payable over time, or serving as a broker to other purchasers of those financial assets. The Home Lending segment is primarily engaged in retail lending, originating primarily Federal Housing Administration (FHA), Veterans Administration (VA) and conventional loans. The Structured Settlements segment operates with various brands, including J.G. Wentworth and Peachtree.

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