Analyzing Paymentus (NYSE:PAY) & Global Blue Group (NYSE:GB)

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

Valuation and Earnings

This table compares Paymentus and Global Blue Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paymentus	$871.74 million	4.72	$44.17 million	$0.39	84.38
Global Blue Group	$545.29 million	2.69	$90.58 million	$0.37	19.89

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

Volatility & Risk

Paymentus has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Global Blue Group has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Paymentus and Global Blue Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	4	3	0	2.43
Global Blue Group	0	1	0	0	2.00

Paymentus currently has a consensus price target of $36.80, suggesting a potential upside of 11.82%. Global Blue Group has a consensus price target of $6.00, suggesting a potential downside of 18.47%. Given Paymentus’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Paymentus is more favorable than Global Blue Group.

Profitability

This table compares Paymentus and Global Blue Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paymentus	5.37%	12.83%	10.85%
Global Blue Group	16.56%	45.20%	4.69%

Insider and Institutional Ownership

78.4% of Paymentus shares are held by institutional investors. Comparatively, 89.7% of Global Blue Group shares are held by institutional investors. 87.8% of Paymentus shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Paymentus beats Global Blue Group on 10 of the 14 factors compared between the two stocks.

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.

About Global Blue Group

Global Blue Group Holding AG, together with its subsidiaries, provides technology-enabled transaction processing services for merchants, banks, acquirers, governments, and travelers in Europe, the Asia Pacific, and internationally. The company operates in three segments: Tax Free Shopping Technology Solutions (TFSS), Added-Value Payment Solutions (AVPS), and Retail Tech Solutions (RTS). It offers TFSS, a value added tax (VAT) refund service that allows eligible shoppers to reclaim VAT on goods purchased outside of their home country; and intelligence and marketing services. The company also provides AVPS, a service which enables customers to pay in their choice of preferred currency, home or destination, and at the point of sale (POS) when shopping outside of their home country under the Dynamic Currency Choice and Currency Select brands. In addition, it offers currency conversion services for POS, e-commerce return solutions, dynamic currency conversion (DCC) services, and DCC services at ATMs, as well as multi-currency processing services for online retailers. Further, the company provides ZigZag, a technology platform that fully digitalizes the eCommerce returns experience and enhances the process for both retailers and consumers; Yocuda that enables retailers to send digital receipts to their customers; and ShipUp, a post-purchase engagement solution for online purchases enabling brands to deliver seamless, proactive, and branded post-purchase communication. Global Blue Group Holding AG was founded in 1980 and is headquartered in Wangen-Brüttisellen, Switzerland.