Head-To-Head Analysis: Freightos (NASDAQ:CRGO) and Usio (NASDAQ:USIO)

Freightos (NASDAQ:CRGO) and Usio (NASDAQ:USIO) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Volatility and Risk

Freightos has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Usio has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Institutional and Insider Ownership

22.7% of Freightos shares are held by institutional investors. Comparatively, 20.2% of Usio shares are held by institutional investors. 19.6% of Freightos shares are held by company insiders. Comparatively, 19.0% of Usio shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Freightos and Usio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freightos	-65.65%	-44.81%	-30.10%
Usio	-2.43%	-11.73%	-1.86%

Earnings & Valuation

This table compares Freightos and Usio”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freightos	$29.46 million	2.63	-$17.52 million	($0.39)	-3.87
Usio	$85.39 million	0.56	-$2.51 million	($0.08)	-21.75

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

Analyst Recommendations

This is a summary of current recommendations for Freightos and Usio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freightos	1	0	1	0	2.00
Usio	1	1	2	0	2.25

Freightos presently has a consensus target price of $3.00, suggesting a potential upside of 98.68%. Usio has a consensus target price of $5.13, suggesting a potential upside of 194.54%. Given Usio’s stronger consensus rating and higher probable upside, analysts clearly believe Usio is more favorable than Freightos.

Summary

Usio beats Freightos on 10 of the 14 factors compared between the two stocks.

About Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.

About Usio

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check and Check Conversion for electronic payment facilitation. In addition, the company offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. Further, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Additionally, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through the internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.