Repay (NASDAQ:RPAY – Get Free Report) and Green Dot (NYSE:GDOT – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Institutional & Insider Ownership
82.7% of Repay shares are held by institutional investors. Comparatively, 92.6% of Green Dot shares are held by institutional investors. 12.0% of Repay shares are held by insiders. Comparatively, 1.4% of Green Dot shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Repay and Green Dot’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Repay | -82.73% | 10.45% | 4.56% |
| Green Dot | -3.25% | 7.56% | 1.16% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Repay | $309.26 million | 1.12 | -$256.72 million | ($3.06) | -1.19 |
| Green Dot | $2.08 billion | 0.34 | -$98.87 million | ($1.32) | -9.42 |
Green Dot has higher revenue and earnings than Repay. Green Dot is trading at a lower price-to-earnings ratio than Repay, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Repay has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, Green Dot has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Repay and Green Dot, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Repay | 1 | 4 | 3 | 0 | 2.25 |
| Green Dot | 1 | 3 | 1 | 1 | 2.33 |
Repay currently has a consensus target price of $5.32, indicating a potential upside of 45.79%. Green Dot has a consensus target price of $14.75, indicating a potential upside of 18.62%. Given Repay’s higher possible upside, equities research analysts plainly believe Repay is more favorable than Green Dot.
Summary
Repay beats Green Dot on 8 of the 15 factors compared between the two stocks.
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.
About Green Dot
Green Dot Corporation, a financial technology and registered bank holding company, provides various financial services to consumers and businesses in the United States. It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. The company provides deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs. It offers money processing services, such as cash transfer services that enable consumers to deposit or pick up cash and pay bills with cash at the point-of-sale at any participating retailer; and simply paid disbursement services, which enable wages and authorized funds disbursement to its deposit account programs and accounts issued by any third-party bank or program manager. In addition, the company offers tax processing services comprising tax refund transfers, which provide the processing technology to facilitate receipt of a taxpayers' refund proceeds; small business lending to independent tax preparation providers that seek small advances; and fast cash advance, a loan that enables tax refund recipients. Green Dot Corporation was incorporated in 1999 and is headquartered in Austin, Texas.
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