Critical Contrast: SilverSun Technologies (NASDAQ:SSNT) versus PaySign (NASDAQ:PAYS)


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SilverSun Technologies (NASDAQ:SSNT) and PaySign (NASDAQ:PAYS) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings for SilverSun Technologies and PaySign, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SilverSun Technologies 0 0 0 0 N/A
PaySign 1 3 1 0 2.00

PaySign has a consensus target price of $6.08, indicating a potential upside of 56.98%. Given PaySign’s higher probable upside, analysts plainly believe PaySign is more favorable than SilverSun Technologies.

Volatility and Risk

SilverSun Technologies has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, PaySign has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Profitability

This table compares SilverSun Technologies and PaySign’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SilverSun Technologies -2.94% -2.16% -1.06%
PaySign 17.23% -13.31% -4.23%

Institutional & Insider Ownership

6.6% of SilverSun Technologies shares are owned by institutional investors. Comparatively, 26.2% of PaySign shares are owned by institutional investors. 44.9% of SilverSun Technologies shares are owned by company insiders. Comparatively, 39.8% of PaySign shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares SilverSun Technologies and PaySign’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SilverSun Technologies $38.50 million 0.83 $6.79 million N/A N/A
PaySign $34.67 million 5.63 $7.45 million $0.14 27.64

PaySign has lower revenue, but higher earnings than SilverSun Technologies.

Summary

PaySign beats SilverSun Technologies on 7 of the 11 factors compared between the two stocks.

About SilverSun Technologies

SilverSun Technologies, Inc. operates as a business application, technology, and consulting company. The company resells enterprise resource planning software for the financial accounting requirements, as well as offers training, technical support, and professional services. It also resells warehouse management system software, which controls the movement and storage of materials; and customer relationship management, human capital management, and business intelligence products. In addition, the company provides managed, cybersecurity, business continuity, disaster recovery, data back-up, network maintenance and service upgrades, and application hosting services. It serves small and medium-sized businesses that sell services; and products to various end users, manufacturers, wholesalers, and distributors in the United States. The company was formerly known as Trey Resources, Inc. and changed its name to SilverSun Technologies, Inc. in June 2011. SilverSun Technologies, Inc. was founded in 1988 and is headquartered in East Hanover, New Jersey.

About PaySign

PaySign, Inc. provides prepaid card products and processing services under the PaySign brand for corporate, consumer, and government applications. The company offers various services, including transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service through PaySign, a proprietary platform. It also develops prepaid card solutions for corporate incentive rewards and corporate expense, per diem and travel payments, healthcare reimbursement payments, pharmaceutical co-pay assistance, donor compensation, and clinical trials; and payroll or general purpose reloadable cards, as well as gift or incentive cards. In addition, the company offers Buy and Bill programs for patients to purchase directly from physician's office or through an infusion center for physician administered therapies; payment solution for source plasma collection centers; and PaySign Premier, a demand deposit account debit card, as well as customer service center and PaySign Communications Suite services. Its principal target markets for processing services comprise prepaid card issuers, retail and private-label issuers, small third-party processors, and small and mid-size financial institutions in the United States and internationally. The company was formerly known as 3PEA International, Inc. and changed its name to PaySign, Inc. in April 2019. PaySign, Inc. is based in Henderson, Nevada.

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