Paysign (NASDAQ:PAYS – Get Free Report) and Marqeta (NASDAQ:MQ – Get Free Report) 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 risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.
Insider & Institutional Ownership
25.9% of Paysign shares are owned by institutional investors. Comparatively, 78.6% of Marqeta shares are owned by institutional investors. 22.4% of Paysign shares are owned by company insiders. Comparatively, 12.6% of Marqeta shares are owned 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.
Profitability
This table compares Paysign and Marqeta’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Paysign | 10.10% | 19.18% | 3.84% |
| Marqeta | -2.23% | -1.62% | -1.00% |
Risk & Volatility
Analyst Recommendations
This is a summary of current recommendations and price targets for Paysign and Marqeta, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paysign | 0 | 1 | 4 | 0 | 2.80 |
| Marqeta | 2 | 9 | 1 | 0 | 1.92 |
Paysign presently has a consensus target price of $8.56, indicating a potential upside of 132.68%. Marqeta has a consensus target price of $5.14, indicating a potential upside of 23.23%. Given Paysign’s stronger consensus rating and higher probable upside, analysts plainly believe Paysign is more favorable than Marqeta.
Valuation and Earnings
This table compares Paysign 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 | |
| Paysign | $58.38 million | 3.47 | $3.82 million | $0.13 | 28.31 |
| Marqeta | $624.88 million | 2.85 | -$13.93 million | ($0.03) | -139.00 |
Paysign has higher earnings, but lower revenue than Marqeta. Marqeta is trading at a lower price-to-earnings ratio than Paysign, indicating that it is currently the more affordable of the two stocks.
Summary
Paysign beats Marqeta on 11 of the 14 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 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.
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