Head-To-Head Review: Expensify (NASDAQ:EXFY) vs. Paysign (NASDAQ:PAYS)

Paysign (NASDAQ:PAYS) and Expensify (NASDAQ:EXFY) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Risk & Volatility

Paysign has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Expensify has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.

Profitability

This table compares Paysign and Expensify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysign	11.38%	21.74%	4.19%
Expensify	-14.68%	-15.26%	-10.96%

Institutional and Insider Ownership

25.9% of Paysign shares are owned by institutional investors. Comparatively, 68.4% of Expensify shares are owned by institutional investors. 24.5% of Paysign shares are owned by insiders. Comparatively, 11.7% of Expensify shares are owned 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.

Analyst Ratings

This is a breakdown of recent ratings for Paysign and Expensify, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysign	0	1	2	0	2.67
Expensify	1	1	0	0	1.50

Paysign presently has a consensus price target of $10.00, suggesting a potential upside of 47.28%. Expensify has a consensus price target of $2.50, suggesting a potential upside of 117.39%. Given Expensify’s higher probable upside, analysts clearly believe Expensify is more favorable than Paysign.

Earnings & Valuation

This table compares Paysign and Expensify”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysign	$82.03 million	4.63	$7.55 million	$0.17	39.94
Expensify	$142.10 million	0.68	-$21.39 million	($0.23)	-5.00

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

Summary

Paysign beats Expensify on 10 of the 14 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 Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.