Repay (NASDAQ:RPAY) and PagSeguro Digital (NYSE:PAGS) Head to Head Survey

Repay (NASDAQ:RPAY) and PagSeguro Digital (NYSE:PAGS) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Profitability

This table compares Repay and PagSeguro Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Repay	-39.08%	9.04%	4.33%
PagSeguro Digital	11.00%	15.39%	3.18%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repay	$313.04 million	0.98	-$10.16 million	($1.37)	-2.44
PagSeguro Digital	$19.52 billion	0.18	$392.38 million	$1.29	8.19

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

Volatility and Risk

Repay has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Repay and PagSeguro Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repay	1	5	5	0	2.36
PagSeguro Digital	0	4	5	0	2.56

Repay currently has a consensus price target of $6.92, indicating a potential upside of 106.78%. PagSeguro Digital has a consensus price target of $11.86, indicating a potential upside of 12.23%. Given Repay’s higher possible upside, equities research analysts plainly believe Repay is more favorable than PagSeguro Digital.

Institutional & Insider Ownership

82.7% of Repay shares are held by institutional investors. Comparatively, 45.9% of PagSeguro Digital shares are held by institutional investors. 12.0% of Repay shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

PagSeguro Digital beats Repay on 7 of the 13 factors compared between the two stocks.

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.

About PagSeguro Digital

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; PagBank digital account, which offers payment and banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth. It also offers cash-in solutions; online and in-person payment tools; and online gaming and cross-border digital services, as well as issues prepaid, credit, and cash cards. In addition, the company provides functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, POS app, i-Banking App, Super App, and e-commerce support and bill payment services; and PedeFácil, an order management and food delivery app. Further, it is involved in processing of back-office solutions, including sales reconciliation, and gateway solutions and services, as well as the capture of credit cards with acquirers and sub acquirers. The company was founded in 2006 and is headquartered in São Paulo, Brazil.