International Money Express (NASDAQ:IMXI) and Paypoint (OTCMKTS:PYPTF) Critical Comparison

Paypoint (OTCMKTS:PYPTF) and International Money Express (NASDAQ:IMXI) 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 dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Insider & Institutional Ownership

86.7% of International Money Express shares are held by institutional investors. 5.1% of International Money Express shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Paypoint and International Money Express’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paypoint	N/A	N/A	N/A
International Money Express	6.26%	35.45%	10.29%

Risk and Volatility

Paypoint has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, International Money Express has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Paypoint and International Money Express, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paypoint	0	0	0	0	0.00
International Money Express	1	5	1	0	2.00

International Money Express has a consensus target price of $14.33, indicating a potential downside of 7.35%. Given International Money Express’ stronger consensus rating and higher probable upside, analysts clearly believe International Money Express is more favorable than Paypoint.

Earnings & Valuation

This table compares Paypoint and International Money Express”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paypoint	$391.23 million	1.12	$24.49 million	N/A	N/A
International Money Express	$658.65 million	0.70	$58.82 million	$1.28	12.09

International Money Express has higher revenue and earnings than Paypoint.

Summary

International Money Express beats Paypoint on 11 of the 12 factors compared between the two stocks.

About Paypoint

PayPoint plc engages in the provision of payments and banking, shopping, and e-commerce services and products in the United Kingdom. The company operates through two segments: PayPoint and Love2shop. The PayPoint segment provides card payment services to retailers, including leased payment devices; EPoS; ATM cash machines; SIM cards sales; receipt advertising; bill payment services and cash top-ups to individual consumers; parcel delivery and collection services; retailer service fees solutions; and digital payment services, as well as cash through to digital services. The segment offers its products under PayPoint One, eMoney, MultiPay, CashOut, and Direct Debits platforms. The Love2shop segment is involved in the provision of shopping vouchers, cards, and e-codes which customers may redeem with participating retailers; and Christmas savings club, to which customers make regular payments throughout the year to help spread the cost of Christmas, before converting to a voucher. It serves consumers, SMEs, and convenience retailers in the commercial, not-for-profit, and public sectors. The company was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.

About International Money Express

International Money Express, Inc., together with its subsidiaries, operates as an omnichannel money remittance services company in the United States, Latin America, Mexico, Central and South America, the Caribbean, Africa, and Asia. The company offers remittance services, which include a suite of ancillary financial processing solutions and payment services; and online payment options, pre-paid debit cards, and direct deposit payroll cards. It provides services through sending and paying agents and company-operated stores, as well as through online and Internet-enabled mobile devices. International Money Express, Inc. is headquartered in Miami, Florida.