Analyzing International Money Express (NASDAQ:IMXI) & Paysafe (NYSE:PSFE)

Paysafe (NYSE:PSFE) and International Money Express (NASDAQ:IMXI) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Institutional & Insider Ownership

54.4% of Paysafe shares are owned by institutional investors. Comparatively, 86.7% of International Money Express shares are owned by institutional investors. 5.1% of International Money Express shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Paysafe has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, International Money Express has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Paysafe and International Money Express, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysafe	2	4	1	0	1.86
International Money Express	0	5	1	0	2.17

Paysafe currently has a consensus target price of $9.81, indicating a potential upside of 30.19%. International Money Express has a consensus target price of $14.33, indicating a potential downside of 9.23%. Given Paysafe’s higher possible upside, equities analysts plainly believe Paysafe is more favorable than International Money Express.

Profitability

This table compares Paysafe and International Money Express’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysafe	-10.73%	11.55%	1.83%
International Money Express	6.26%	35.45%	10.29%

Earnings & Valuation

This table compares Paysafe and International Money Express”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysafe	$1.70 billion	0.27	$22.16 million	($3.15)	-2.39
International Money Express	$658.65 million	0.71	$58.82 million	$1.28	12.34

International Money Express has lower revenue, but higher earnings than Paysafe. Paysafe is trading at a lower price-to-earnings ratio than International Money Express, indicating that it is currently the more affordable of the two stocks.

Summary

International Money Express beats Paysafe on 10 of the 13 factors compared between the two stocks.

About Paysafe

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.

About International Money Express

International Money Express, Inc., together with its subsidiaries, operates as an omnichannel money remittance services company in the United States, Latin America, Mexico, Central and South America, the Caribbean, Africa, and Asia. The company offers remittance services, which include a suite of ancillary financial processing solutions and payment services; and online payment options, pre-paid debit cards, and direct deposit payroll cards. It provides services through sending and paying agents and company-operated stores, as well as through online and Internet-enabled mobile devices. International Money Express, Inc. is headquartered in Miami, Florida.