Global Payments (NYSE:GPN) and Paymentus (NYSE:PAY) Financial Survey

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

Risk and Volatility

Paymentus has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Global Payments has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Insider and Institutional Ownership

78.4% of Paymentus shares are owned by institutional investors. Comparatively, 89.8% of Global Payments shares are owned by institutional investors. 55.7% of Paymentus shares are owned by company insiders. Comparatively, 0.6% of Global Payments shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Paymentus and Global Payments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	4	3	2	2.78
Global Payments	3	17	13	0	2.30

Paymentus currently has a consensus target price of $38.86, suggesting a potential upside of 16.58%. Global Payments has a consensus target price of $95.55, suggesting a potential downside of 2.17%. Given Paymentus’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Paymentus is more favorable than Global Payments.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paymentus	$1.42 billion	2.95	$66.94 million	$0.73	45.66
Global Payments	$10.21 billion	2.53	$1.40 billion	($2.98)	-32.78

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

Profitability

This table compares Paymentus and Global Payments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paymentus	6.65%	16.54%	13.89%
Global Payments	-9.16%	13.80%	5.73%

Summary

Paymentus beats Global Payments on 11 of the 15 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 Payments

Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, account payables, and electronic payment alternatives solutions for businesses and governments. It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations. The company was founded in 1967 and is headquartered in Atlanta, Georgia.