Repay (NASDAQ:RPAY) vs. Marqeta (NASDAQ:MQ) Financial Survey

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

Valuation & Earnings

This table compares Repay and Marqeta”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	1.11	-$10.16 million	($1.26)	-3.01
Marqeta	$506.99 million	4.46	$27.29 million	($0.08)	-63.00

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Repay and Marqeta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repay	1	5	4	0	2.30
Marqeta	2	6	1	1	2.10

Repay currently has a consensus target price of $7.03, suggesting a potential upside of 85.43%. Marqeta has a consensus target price of $5.50, suggesting a potential upside of 9.13%. Given Repay’s stronger consensus rating and higher possible upside, analysts plainly believe Repay is more favorable than Marqeta.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Repay	-39.08%	8.72%	4.20%
Marqeta	-6.74%	-4.22%	-2.88%

Volatility & Risk

Repay has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Marqeta has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.

Institutional & Insider Ownership

82.7% of Repay shares are held by institutional investors. Comparatively, 78.6% of Marqeta shares are held by institutional investors. 12.0% of Repay shares are held by insiders. Comparatively, 12.6% of Marqeta shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Repay beats Marqeta on 8 of the 15 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 Marqeta

Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.