Paysign (NASDAQ:PAYS) vs. Cantaloupe (NASDAQ:CTLP) Head to Head Review

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

Volatility and Risk

Cantaloupe has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Paysign has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Insider and Institutional Ownership

75.8% of Cantaloupe shares are held by institutional investors. Comparatively, 25.9% of Paysign shares are held by institutional investors. 7.1% of Cantaloupe shares are held by company insiders. Comparatively, 22.4% of Paysign shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Cantaloupe and Paysign’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cantaloupe	17.32%	8.76%	5.73%
Paysign	9.21%	17.19%	3.41%

Valuation & Earnings

This table compares Cantaloupe and Paysign”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cantaloupe	$302.55 million	2.58	$64.53 million	$0.18	58.89
Paysign	$82.03 million	3.78	$3.82 million	$0.13	43.23

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Cantaloupe and Paysign, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cantaloupe	1	6	1	0	2.00
Paysign	0	1	3	0	2.75

Cantaloupe currently has a consensus price target of $12.60, suggesting a potential upside of 18.87%. Paysign has a consensus price target of $9.42, suggesting a potential upside of 67.56%. Given Paysign’s stronger consensus rating and higher possible upside, analysts plainly believe Paysign is more favorable than Cantaloupe.

Summary

Cantaloupe beats Paysign on 8 of the 14 factors compared between the two stocks.

About Cantaloupe

Cantaloupe, Inc., a digital payments and software services company, provides technology solutions for self-service commerce market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides G11 cashless and pulse kits that are 4G LTE digital payment devices for payment and consumer engagement applications; G11 chip kit, a digital reader that accepts contact EMV and contactless EMV payment methods; Engage series comprising Engage and Engage Combo, which are digital touchscreen devices that offers networking, security, and interactivity payment methods; and card touchscreen card readers, including P66, P100, P100Pro, and P30. In addition, the company offers self-checkout kiosks,?smart store?concepts, and the Cantaloupe Go management platform comprising Go Mini, Go MiniX, Go Plus100, Go Plus200, Go Plus300, Go Max, Cooler Cafe, and Smart Market; Go Portal, a robust cloud-based platform; and Cheq products, which supports attended and unattended self-service kiosks for the stadium, entertainment, and festival sectors. Further, it provides integrated software services for payment or asset tracking devices in the field to connect into platform for advanced data management, analytics, route scheduling, and loyalty and reward programs; and a range of self-service hardware solutions for vending, micro-markets, amusement, arcade, commercial laundry, air/vacuum, car wash, and other applications. Additionally, the company offers professional, network infrastructure, card processing, and customer/consumer services. Cantaloupe, Inc. was formerly known as USA Technologies, Inc. The company was incorporated in 1992 and is headquartered in Malvern, Pennsylvania.

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.