Comparing Paymentus (NYSE:PAY) and Finance of America Companies (NYSE:FOA)

Finance of America Companies (NYSE:FOA) and Paymentus (NYSE:PAY) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Volatility & Risk

Finance of America Companies has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Paymentus has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Finance of America Companies and Paymentus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finance of America Companies	1	2	2	0	2.20
Paymentus	0	5	2	2	2.67

Finance of America Companies currently has a consensus price target of $30.50, indicating a potential upside of 180.61%. Paymentus has a consensus price target of $38.86, indicating a potential upside of 12.62%. Given Finance of America Companies’ higher possible upside, research analysts plainly believe Finance of America Companies is more favorable than Paymentus.

Valuation and Earnings

This table compares Finance of America Companies and Paymentus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finance of America Companies	$497.43 million	0.38	$45.24 million	($7.79)	-1.40
Paymentus	$1.42 billion	3.06	$66.94 million	$0.73	47.26

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

Institutional and Insider Ownership

97.2% of Finance of America Companies shares are held by institutional investors. Comparatively, 78.4% of Paymentus shares are held by institutional investors. 35.4% of Finance of America Companies shares are held by insiders. Comparatively, 55.7% of Paymentus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Finance of America Companies and Paymentus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finance of America Companies	-0.10%	21.24%	0.24%
Paymentus	6.65%	16.14%	13.57%

Summary

Paymentus beats Finance of America Companies on 10 of the 14 factors compared between the two stocks.

About Finance of America Companies

Finance of America Companies, Inc., which operates as Finance of America, is a specialty finance company focused on home-equity solutions. Its core business is reverse mortgage lending, which enables eligible homeowners to access a portion of their home equity while continuing to live in their homes, subject to loan terms and borrower obligations. The company offers government-insured Home Equity Conversion Mortgages (HECMs) and proprietary reverse mortgage products, including jumbo loans. Its offerings also include reverse mortgages used to purchase a home.

About Paymentus

Paymentus Holdings, Inc. provides cloud-based billing and payment technology for businesses and public-sector organizations. Its platform helps billers present bills, accept and process payments, and communicate with customers through digital and other payment channels. The company serves organizations in sectors such as utilities, financial services, government, healthcare, insurance, and telecommunications. Its services support multiple payment methods and are designed to integrate with clients’ billing and customer-management systems.