Comparing Marqeta (NASDAQ:MQ) and PAR Technology (NYSE:PAR)

PAR Technology (NYSE:PAR) and Marqeta (NASDAQ:MQ) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Risk & Volatility

PAR Technology has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Marqeta has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

Insider & Institutional Ownership

78.6% of Marqeta shares are owned by institutional investors. 3.7% of PAR Technology shares are owned by insiders. Comparatively, 12.6% of Marqeta shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PAR Technology	-19.21%	-2.56%	-1.58%
Marqeta	-6.74%	-4.22%	-2.88%

Analyst Recommendations

This is a breakdown of current recommendations for PAR Technology and Marqeta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PAR Technology	1	2	6	0	2.56
Marqeta	2	9	1	0	1.92

PAR Technology presently has a consensus price target of $64.00, indicating a potential upside of 60.95%. Marqeta has a consensus price target of $5.33, indicating a potential upside of 20.12%. Given PAR Technology’s stronger consensus rating and higher probable upside, analysts plainly believe PAR Technology is more favorable than Marqeta.

Earnings & Valuation

This table compares PAR Technology and Marqeta”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PAR Technology	$349.98 million	4.61	-$4.99 million	($2.14)	-18.58
Marqeta	$506.99 million	3.85	$27.29 million	($0.08)	-55.50

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

About PAR Technology

PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and kitchen display systems, payment devices, cash drawers, printers, and other peripherals. In addition, this segment provides services, such as hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services comprising inside and outside plant services, and maintenance of infrastructure and information systems; satellite ground system support comprising operations and maintenance, sustainment, upgrades, communications security management, anomaly response/resolution, process improvement, emergency response, and disaster recovery services; and information technology infrastructure library services to the United States Department of Defense, intelligence community (IC), and other federal agencies. This segment also offers various IC support services, systems integration, situational awareness solutions, and mission readiness support services. The company was founded in 1968 and is based in New Hartford, New York.

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.