Critical Analysis: Repay (RPAY) versus Its Competitors

Repay (NASDAQ:RPAY) is one of 342 publicly-traded companies in the “Financial Services” industry, but how does it compare to its competitors? We will compare Repay to related businesses based on the strength of its risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Volatility & Risk

Repay has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, Repay’s competitors have a beta of 2.51, indicating that their average stock price is 151% more volatile than the S&P 500.

Earnings and Valuation

This table compares Repay and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Repay	$309.26 million	-$256.72 million	-2.19
Repay Competitors	$6.42 billion	$1.07 billion	8.38

Repay’s competitors have higher revenue and earnings than Repay. Repay is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Repay and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repay	1	3	3	0	2.29
Repay Competitors	1966	6864	11612	443	2.50

Repay presently has a consensus target price of $5.25, suggesting a potential upside of 17.32%. As a group, “Financial Services” companies have a potential downside of 2.19%. Given Repay’s higher possible upside, analysts plainly believe Repay is more favorable than its competitors.

Profitability

This table compares Repay and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Repay	-49.57%	11.03%	4.28%
Repay Competitors	-409.62%	-16.12%	-6.09%

Institutional & Insider Ownership

82.7% of Repay shares are owned by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are owned by institutional investors. 12.0% of Repay shares are owned by insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are owned 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.

Summary

Repay competitors beat Repay on 8 of the 13 factors compared.

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.