Head-To-Head Comparison: Usio (NASDAQ:USIO) & Remitly Global (NASDAQ:RELY)

Remitly Global (NASDAQ:RELY) and Usio (NASDAQ:USIO) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Remitly Global	$1.64 billion	2.38	$67.93 million	$0.49	37.68
Usio	$88.85 million	0.47	-$2.51 million	($0.08)	-18.90

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

Analyst Ratings

This is a summary of current ratings and price targets for Remitly Global and Usio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Remitly Global	0	2	9	1	2.92
Usio	1	1	2	0	2.25

Remitly Global currently has a consensus target price of $24.63, suggesting a potential upside of 33.36%. Usio has a consensus target price of $5.13, suggesting a potential upside of 238.96%. Given Usio’s higher possible upside, analysts clearly believe Usio is more favorable than Remitly Global.

Insider & Institutional Ownership

74.3% of Remitly Global shares are owned by institutional investors. Comparatively, 20.2% of Usio shares are owned by institutional investors. 6.5% of Remitly Global shares are owned by insiders. Comparatively, 19.0% of Usio shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Remitly Global	6.12%	12.90%	8.24%
Usio	-2.43%	-11.73%	-1.86%

Risk & Volatility

Remitly Global has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Usio has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Summary

Remitly Global beats Usio on 12 of the 15 factors compared between the two stocks.

About Remitly Global

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.

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.