Contrasting Remitly Global (NASDAQ:RELY) & Paymentus (NYSE:PAY)
by Tristan Rich · The Markets DailyPaymentus (NYSE:PAY – Get Free Report) and Remitly Global (NASDAQ:RELY – Get Free Report) are both mid-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Profitability
This table compares Paymentus and Remitly Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Paymentus | 5.29% | 12.68% | 10.68% |
| Remitly Global | 1.36% | 3.12% | 2.05% |
Valuation and Earnings
This table compares Paymentus and Remitly Global”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Paymentus | $871.74 million | 4.60 | $44.17 million | $0.46 | 69.55 |
| Remitly Global | $1.26 billion | 2.42 | -$36.98 million | $0.09 | 162.78 |
Paymentus has higher earnings, but lower revenue than Remitly Global. Paymentus is trading at a lower price-to-earnings ratio than Remitly Global, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
78.4% of Paymentus shares are held by institutional investors. Comparatively, 74.3% of Remitly Global shares are held by institutional investors. 75.4% of Paymentus shares are held by insiders. Comparatively, 7.5% of Remitly Global shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Paymentus and Remitly Global, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paymentus | 0 | 4 | 4 | 0 | 2.50 |
| Remitly Global | 1 | 2 | 8 | 0 | 2.64 |
Paymentus currently has a consensus target price of $37.50, indicating a potential upside of 17.22%. Remitly Global has a consensus target price of $25.88, indicating a potential upside of 76.62%. Given Remitly Global’s stronger consensus rating and higher probable upside, analysts plainly believe Remitly Global is more favorable than Paymentus.
Volatility & Risk
Paymentus has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Remitly Global has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.
Summary
Paymentus beats Remitly Global on 9 of the 14 factors compared between the two stocks.
About Paymentus
Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.
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.