Repay (NASDAQ:RPAY) vs. PagSeguro Digital (NYSE:PAGS) Financial Survey

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for PagSeguro Digital and Repay, as provided by MarketBeat.

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

PagSeguro Digital presently has a consensus target price of $11.86, suggesting a potential upside of 12.23%. Repay has a consensus target price of $6.92, suggesting a potential upside of 106.78%. Given Repay’s higher probable upside, analysts clearly believe Repay is more favorable than PagSeguro Digital.

Institutional & Insider Ownership

45.9% of PagSeguro Digital shares are held by institutional investors. Comparatively, 82.7% of Repay shares are held by institutional investors. 12.0% of Repay shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

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

Earnings and Valuation

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

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

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 & Risk

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

Summary

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

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.

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.