Analyzing PAR Technology (NYSE:PAR) and Remitly Global (NASDAQ:RELY)
by Kim Johansen · The Markets DailyRemitly Global (NASDAQ:RELY – Get Free Report) and PAR Technology (NYSE:PAR – Get Free Report) are both mid-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.
Institutional & Insider Ownership
74.3% of Remitly Global shares are owned by institutional investors. 8.1% of Remitly Global shares are owned by company insiders. Comparatively, 3.7% of PAR Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Remitly Global has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, PAR Technology has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.
Profitability
This table compares Remitly Global and PAR Technology’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Remitly Global | -0.34% | -0.70% | -0.45% |
PAR Technology | -2.88% | -3.90% | -2.29% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Remitly Global and PAR Technology, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Remitly Global | 0 | 1 | 8 | 0 | 2.89 |
PAR Technology | 0 | 2 | 6 | 0 | 2.75 |
Remitly Global currently has a consensus price target of $28.88, suggesting a potential upside of 54.99%. PAR Technology has a consensus price target of $79.86, suggesting a potential upside of 16.24%. Given Remitly Global’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Remitly Global is more favorable than PAR Technology.
Valuation and Earnings
This table compares Remitly Global and PAR Technology”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Remitly Global | $1.26 billion | 3.00 | -$36.98 million | ($0.03) | -621.00 |
PAR Technology | $349.98 million | 7.95 | -$4.99 million | ($0.13) | -528.46 |
PAR Technology has lower revenue, but higher earnings than Remitly Global. Remitly Global is trading at a lower price-to-earnings ratio than PAR Technology, indicating that it is currently the more affordable of the two stocks.
Summary
Remitly Global beats PAR Technology on 10 of the 14 factors compared between the two stocks.
About Remitly Global
Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.
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.