Critical Survey: Payoneer Global (NASDAQ:PAYO) & Paysafe (NYSE:PSFE)

Paysafe (NYSE:PSFE) and Payoneer Global (NASDAQ:PAYO) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Valuation & Earnings

This table compares Paysafe and Payoneer Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysafe	$1.70 billion	0.28	$22.16 million	($2.16)	-3.71
Payoneer Global	$977.72 million	2.11	$121.16 million	$0.19	30.53

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

Insider & Institutional Ownership

54.4% of Paysafe shares are held by institutional investors. Comparatively, 82.2% of Payoneer Global shares are held by institutional investors. 2.6% of Payoneer Global shares are held by company 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.

Profitability

This table compares Paysafe and Payoneer Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysafe	-7.35%	11.68%	1.99%
Payoneer Global	6.96%	10.71%	1.01%

Risk and Volatility

Paysafe has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, Payoneer Global has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Paysafe and Payoneer Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysafe	3	3	1	0	1.71
Payoneer Global	0	2	6	0	2.75

Paysafe currently has a consensus target price of $10.26, indicating a potential upside of 27.93%. Payoneer Global has a consensus target price of $8.83, indicating a potential upside of 52.30%. Given Payoneer Global’s stronger consensus rating and higher probable upside, analysts plainly believe Payoneer Global is more favorable than Paysafe.

Summary

Payoneer Global beats Paysafe on 10 of the 14 factors compared between the two stocks.

About Paysafe

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.

About Payoneer Global

Payoneer Global Inc. operates as a financial technology company. It operates a payment infrastructure platform that provides customers with a one-stop, global, multi-currency account to serve their accounts receivable and accounts payable needs. The company delivers a suite of services that includes cross-border payments, physical and virtual MasterCard cards, working capital, risk management, and other services. It also offers various payment options with minimal integration required, full back-office functions, and customer support offered. The company's platform delivers bank-grade security, stability, and redundancy. It serves customers, such as small and medium-sized businesses in approximately 190 countries and territories worldwide. Payoneer Global Inc. was founded in 2005 and is headquartered in New York, New York.