Critical Survey: JetPay (JTPY) versus ConvergeOne (CVON)
JetPay (NASDAQ: JTPY) and ConvergeOne (NASDAQ:CVON) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.
This is a breakdown of recent ratings and recommmendations for JetPay and ConvergeOne, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insider and Institutional Ownership
12.7% of JetPay shares are held by institutional investors. Comparatively, 5.8% of ConvergeOne shares are held by institutional investors. 62.9% of JetPay shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares JetPay and ConvergeOne’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|JetPay||$76.04 million||0.46||-$3.10 million||($0.75)||-3.00|
ConvergeOne has higher revenue and earnings than JetPay. JetPay is trading at a lower price-to-earnings ratio than ConvergeOne, indicating that it is currently the more affordable of the two stocks.
This table compares JetPay and ConvergeOne’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ConvergeOne beats JetPay on 10 of the 12 factors compared between the two stocks.
JetPay Corporation provides debit and credit card processing, payroll, human capital management (HCM) and card services to businesses and their employees in the United States. The company operates through two segments, JetPay Payment Processing and JetPay HR and Payroll. It offers debit and credit processing and automated clearing house payment services to small and medium-sized businesses, as well as to large entities, which processes Internet transactions and recurring billings; and HCM services, including payroll, tax filing, time and attendance, HR, and other related services to small and medium-sized employers. The company also provides transaction processing services, such as end-to-end encryption and tokenization; high speed network and authorization; batch processing; gift cards; fraud protection; and Website or payment application services; and MAGIC, a payments gateway that provides real-time integrated solutions to merchants. In addition, it provides low-cost money management and payment services to unbanked and under-banked employees through prepaid debit cards. The company was formerly known as Universal Business Payment Solutions Acquisition Corporation and changed its name to JetPay Corporation in August 2013. JetPay Corporation is headquartered in Center Valley, Pennsylvania.
ConvergeOne Holdings, Inc. provides collaboration and technology solutions for large and medium enterprises. It offers cloud solutions, such as C1CX, a collaboration solution spanning unified communications and contact centers with software applications, integration, and professional services; hosted collaboration solutions; and any communications as a service solution. The company also offers collaboration and unified communications, such as applications, conferencing, messaging and presence, mobility and Bring Your Own Device, and telephony services; enterprise applications and software development solutions; and enterprise networking solutions, such as routing and switching, mobility and mobile device management, and wireless. In addition, it offers contact center solutions, such as analytics and reporting, desktop, omnichannel communications, remote agent, social media, cloud connectors and integration software, and workforce optimization and quality monitoring, as well as IVR, self-services, and advanced routing; data center and virtualization solutions, including servers, storage, tools and management, and virtualization; and security solutions, such as firewall, secure socket layer, adaptive security appliance, and risk mitigation. Further, the company provides professional and managed services, such as application, cloud and data, communication, professional voice recording, networking, program management, resiliency, security, and systems and infrastructure. ConvergeOne Holdings, Inc. offers its services through delivery models, such as on-premise; and in private, hybrid, and public clouds, as well as through the ConvergeOne Cloud. It serves banking, finance, education, government, healthcare, hospitality, insurance, manufacturing, media, pharmaceutical, technology, transportation, and utilities industries. It has strategic partnerships with Avaya, Cisco, IBM, Genesys, and Microsoft. The company was founded in 1993 and is headquartered in Eagan, Minnesota.
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