Paysafe (NYSE:PSFE) versus Marqeta (NASDAQ:MQ) Financial Review

Paysafe (NYSE:PSFE) and Marqeta (NASDAQ:MQ) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Insider & Institutional Ownership

54.4% of Paysafe shares are held by institutional investors. Comparatively, 78.6% of Marqeta shares are held by institutional investors. 12.6% of Marqeta shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Paysafe and Marqeta, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysafe	2	4	1	0	1.86
Marqeta	2	8	1	0	1.91

Paysafe currently has a consensus price target of $10.21, indicating a potential upside of 9.43%. Marqeta has a consensus price target of $5.22, indicating a potential upside of 34.50%. Given Marqeta’s stronger consensus rating and higher possible upside, analysts clearly believe Marqeta is more favorable than Paysafe.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paysafe	-10.73%	11.55%	1.83%
Marqeta	0.33%	0.27%	0.15%

Risk and Volatility

Paysafe has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, Marqeta has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Earnings & Valuation

This table compares Paysafe and Marqeta”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysafe	$1.70 billion	0.28	-$182.51 million	($3.15)	-2.96
Marqeta	$624.88 million	2.65	-$13.93 million	$0.01	388.00

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

Summary

Marqeta beats Paysafe on 9 of the 13 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 Marqeta

Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.