Repay (NASDAQ:RPAY – Get Free Report) and PAR Technology (NYSE:PAR – Get Free Report) 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 profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.
Risk & Volatility
Repay has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, PAR Technology has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.
Valuation and Earnings
This table compares Repay and PAR Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Repay | $309.26 million | 1.16 | -$256.72 million | ($3.06) | -1.24 |
| PAR Technology | $475.66 million | 1.33 | -$84.46 million | ($1.87) | -8.19 |
PAR Technology has higher revenue and earnings than Repay. PAR Technology is trading at a lower price-to-earnings ratio than Repay, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Repay and PAR Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Repay | 1 | 4 | 3 | 0 | 2.25 |
| PAR Technology | 1 | 1 | 5 | 0 | 2.57 |
Repay currently has a consensus target price of $5.54, indicating a potential upside of 46.45%. PAR Technology has a consensus target price of $30.67, indicating a potential upside of 100.13%. Given PAR Technology’s stronger consensus rating and higher probable upside, analysts plainly believe PAR Technology is more favorable than Repay.
Profitability
This table compares Repay and PAR Technology’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% |
| PAR Technology | -16.04% | -2.57% | -1.56% |
Institutional & Insider Ownership
82.7% of Repay shares are owned by institutional investors. 12.0% of Repay shares are owned by company insiders. Comparatively, 2.3% of PAR Technology shares are owned 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.
Summary
PAR Technology beats Repay on 8 of the 14 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 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.
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