Critical Comparison: Hillstream Biopharma (NASDAQ:CNTN) vs. Repay (NASDAQ:RPAY)

Hillstream Biopharma (NASDAQ:CNTN) and Repay (NASDAQ:RPAY) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares Hillstream Biopharma and Repay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hillstream Biopharma	N/A	-20.06%	-15.90%
Repay	-49.57%	11.03%	4.28%

Volatility and Risk

Hillstream Biopharma has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Repay has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500.

Earnings & Valuation

This table compares Hillstream Biopharma and Repay”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hillstream Biopharma	$1.50 million	123.85	-$35.92 million	($0.50)	-4.65
Repay	$337.81 million	1.11	-$256.72 million	($2.04)	-1.93

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

Institutional and Insider Ownership

1.2% of Hillstream Biopharma shares are held by institutional investors. Comparatively, 82.7% of Repay shares are held by institutional investors. 3.3% of Hillstream Biopharma shares are held by insiders. Comparatively, 12.0% of Repay shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hillstream Biopharma	1	0	0	0	1.00
Repay	1	3	3	0	2.29

Repay has a consensus target price of $5.25, indicating a potential upside of 33.59%. Given Repay’s stronger consensus rating and higher probable upside, analysts clearly believe Repay is more favorable than Hillstream Biopharma.

Summary

Repay beats Hillstream Biopharma on 10 of the 14 factors compared between the two stocks.

About Hillstream Biopharma

Hillstream BioPharma, Inc., a pre-clinical biotechnology company, develops novel therapeutic candidates targeting ferroptosis, an anti-cancer mechanism resulting in iron mediated cell death (IMCD) for the treatment resistant cancers. The company’s product candidate is HSB-1216, an IMCD inducer targeting solid tumors. It also develops HSB-888, a dual Quatramer loaded IMCD inducer coupled with its anthracycline analogue for solid tumors; HSB-510, a targeted bifunctional inhibitory compound in Quatramer with single digit nanomolar; IC50 against PI3K-delta and HDAC6, which is also known to downregulate; c-myc, a cancer drug target; and HSB-114, an immunotherapeutic agent, which uses its Quatramer technology to deliver tumor necrosis factor-alpha gene into cancer cells. The company was incorporated in 2019 and is based in Bridgewater, New Jersey.

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.