Critical Contrast: ATRenew (NYSE:RERE) vs. Priority Technology (NASDAQ:PRTH)

Priority Technology (NASDAQ:PRTH) and ATRenew (NYSE:RERE) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Risk and Volatility

Priority Technology has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, ATRenew has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Priority Technology and ATRenew, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Priority Technology	0	3	2	0	2.40
ATRenew	0	1	0	0	2.00

Priority Technology presently has a consensus target price of $8.50, indicating a potential upside of 53.15%. Given Priority Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Priority Technology is more favorable than ATRenew.

Insider and Institutional Ownership

11.5% of Priority Technology shares are owned by institutional investors. Comparatively, 19.3% of ATRenew shares are owned by institutional investors. 66.2% of Priority Technology shares are owned by company insiders. Comparatively, 10.7% of ATRenew shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Priority Technology and ATRenew’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Priority Technology	5.78%	-60.29%	4.35%
ATRenew	1.44%	8.91%	6.43%

Earnings & Valuation

This table compares Priority Technology and ATRenew”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Priority Technology	$879.70 million	0.52	$23.38 million	$0.53	10.47
ATRenew	$19.64 billion	0.07	-$1.13 million	$0.16	36.16

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

Summary

Priority Technology beats ATRenew on 9 of the 14 factors compared between the two stocks.

About Priority Technology

Priority Technology Holdings, Inc. operates as a payment technology company in the United States. The company operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business (B2B) Payments, and Enterprise Payments. It offers SMB payments processing solutions for B2C transactions through independent sales organizations, financial institutions, independent software vendors, and other referral partners through its MX product suite, which includes MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing. The company also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, it provides curated managed services; payment-adjacent technologies to facilitate the acceptance of electronic payments from customers; and Plastiq payables management software, which helps businesses in improving cash flow with instant access to working capital. Further, the company offers embedded finance and BaaS solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. It serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. The company was founded in 2005 and is headquartered in Alpharetta, Georgia.

About ATRenew

ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.