Repay (NASDAQ:RPAY) vs. Tenet Fintech Group (OTCMKTS:PKKFF) Critical Contrast

Repay (NASDAQ:RPAY) and Tenet Fintech Group (OTCMKTS:PKKFF) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares Repay and Tenet Fintech Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repay	$309.26 million	1.19	-$256.72 million	($3.06)	-1.27
Tenet Fintech Group	$2.03 million	6.05	-$42.29 million	($0.09)	-0.56

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

Volatility and Risk

Repay has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Tenet Fintech Group has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Profitability

This table compares Repay and Tenet Fintech Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Repay	-82.73%	10.45%	4.56%
Tenet Fintech Group	-1,215.85%	-722.03%	-68.92%

Institutional and Insider Ownership

82.7% of Repay shares are owned by institutional investors. Comparatively, 0.3% of Tenet Fintech Group shares are owned by institutional investors. 12.0% of Repay shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Repay and Tenet Fintech Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repay	1	4	3	0	2.25
Tenet Fintech Group	0	0	0	0	0.00

Repay presently has a consensus target price of $5.54, indicating a potential upside of 42.67%. Given Repay’s stronger consensus rating and higher probable upside, research analysts plainly believe Repay is more favorable than Tenet Fintech Group.

Summary

Repay beats Tenet Fintech Group on 10 of the 14 factors compared between the two stocks.

About Repay

Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit card processing, automated clearing house (ACH) processing, e-cash, and digital wallet services; virtual credit card processing, enhanced ACH processing, instant funding, clearing and settlement, and communication solutions; and proprietary payment channels that include Web-based, virtual terminal, online client portal, mobile application, text-to-pay, interactive voice response, and point of sale services. It serves customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.

About Tenet Fintech Group

Tenet Fintech Group Inc., through its subsidiaries, provides various analytics and AI-based services to small-and-medium businesses and financial institutions. It offers Business Hub, a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B transactions among its members. The company was formerly known as Peak Fintech Group Inc. and changed its name to Tenet Fintech Group Inc. in November 2021. Tenet Fintech Group Inc. was incorporated in 2008 and is headquartered in Toronto, Canada.