Critical Comparison: Pax Global Tech (OTCMKTS:PXGYF) vs. Paysign (NASDAQ:PAYS)

Paysign (NASDAQ:PAYS) and Pax Global Tech (OTCMKTS:PXGYF) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Profitability

This table compares Paysign and Pax Global Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysign	9.90%	19.32%	3.64%
Pax Global Tech	N/A	N/A	N/A

Insider and Institutional Ownership

25.9% of Paysign shares are held by institutional investors. 22.4% of Paysign shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Paysign and Pax Global Tech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysign	0	0	4	0	3.00
Pax Global Tech	0	0	0	0	0.00

Paysign currently has a consensus target price of $8.56, suggesting a potential upside of 54.84%. Given Paysign’s stronger consensus rating and higher probable upside, analysts plainly believe Paysign is more favorable than Pax Global Tech.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysign	$68.54 million	4.39	$3.82 million	$0.12	46.08
Pax Global Tech	$774.67 million	1.13	$91.46 million	N/A	N/A

Pax Global Tech has higher revenue and earnings than Paysign.

Risk & Volatility

Paysign has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Pax Global Tech has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Summary

Paysign beats Pax Global Tech on 10 of the 12 factors compared between the two stocks.

About Paysign

Paysign, Inc. provides prepaid card programs, comprehensive patient affordability offerings, digital banking services, and integrated payment processing services for businesses, consumers, and government institutions. Its product offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card. The company markets its prepaid card solutions under the Paysign brand. Its primary market focus is on companies and municipalities that require a streamlined payment solution for rewards, rebates, payment assistance, and other payments to their customers, employees, agents, and others. The company was formerly known as 3PEA International, Inc. and changed its name to Paysign, Inc. in April 2019. Paysign, Inc. was incorporated in 1995 and is headquartered in Henderson, Nevada.

About Pax Global Tech

PAX Global Technology Limited, an investment holding company, develops and sells electronic funds transfer point-of-sale products in Hong Kong, the People's Republic of China, the United States, and Italy. Its E-payment terminal products include smart E-payment solutions; and android smartPOS, android smart tablet, unattended payment products, PINpad, and Minipigs and mPOS. The company also develops MAXSTORE, a cloud-based Software as a Service platform that provides one-stop terminal management and valu-added services; paxRhino, a key injection service; and CyberLab, a payment application cloud test platform that provides professional one-stop online debugging and testing service. In addition, it offers payment solutions services, and maintenance and installation services. PAX Global Technology Limited was founded in 2000 and is headquartered in Wan Chai, Hong Kong.