Head to Head Comparison: Radware (NASDAQ:RDWR) & Priority Technology (NASDAQ:PRTH)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Priority Technology and Radware, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Priority Technology	0	1	2	0	2.67
Radware	0	1	1	0	2.50

Priority Technology currently has a consensus target price of $7.75, suggesting a potential upside of 41.17%. Radware has a consensus target price of $22.00, suggesting a potential upside of 18.41%. Given Priority Technology’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Priority Technology is more favorable than Radware.

Insider and Institutional Ownership

11.5% of Priority Technology shares are owned by institutional investors. Comparatively, 73.1% of Radware shares are owned by institutional investors. 76.3% of Priority Technology shares are owned by company insiders. Comparatively, 21.6% of Radware shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Priority Technology and Radware’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Priority Technology	$755.61 million	0.58	-$1.31 million	($0.58)	-9.47
Radware	$261.29 million	3.15	-$21.59 million	($0.46)	-40.39

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

Risk & Volatility

Priority Technology has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Radware has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Priority Technology	0.57%	-3.11%	0.28%
Radware	-7.67%	-2.62%	-1.48%

Summary

Priority Technology beats Radware 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 Radware

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers worldwide. The company operates in two segments, Radware's Core Business and The Hawks' Business. It offers DefensePro provides automated DDoS protection; Radware Kubernetes, a web application firewall solution; and Cyber Controller, a unified solution for management, configuration, and attack lifecycle. The company also provides Alteon, an application delivery and security solution that manages application traffic across cloud and data center locations for optimizing availability and performance; and LinkProof NG, a multi-homing and enterprise gateway solution. In addition, it offers ERT Security Updates Subscription that provides protection from network elements, hosts, and applications; ERT Active Attackers Feed, a threat intelligence feed to protect against DDoS threats; ERT Protection Packages; Alteon Global Elastic License, a purchasing and deployment subscription; MSSP Portal, a DDoS detection and mitigation service portal; Location-based Mitigation that enables network traffic based on the geolocation mapping of IP subnets; and Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud. Further, the company provides Cloud Web DDoS Protection, Cloud WAF Service, Bot Manager, Cloud-Native Protector, and Cloud Application Protection Services, as well as technical support, professional, managed, and training and certification services. It sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. The company was founded in 1996 and is headquartered in Tel Aviv, Israel.