Critical Analysis: Loomis (OTCMKTS:LOIMF) versus Repay (NASDAQ:RPAY)

Loomis (OTCMKTS:LOIMF) and Repay (NASDAQ:RPAY) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

82.7% of Repay shares are held by institutional investors. 12.0% of Repay shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Loomis has a beta of -1.14, meaning that its stock price is 214% less volatile than the S&P 500. Comparatively, Repay has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Loomis and Repay, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loomis	0	0	0	0	0.00
Repay	1	5	4	0	2.30

Repay has a consensus target price of $5.69, suggesting a potential upside of 109.35%. Given Repay’s stronger consensus rating and higher possible upside, analysts plainly believe Repay is more favorable than Loomis.

Valuation and Earnings

This table compares Loomis and Repay”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loomis	$3.11 billion	1.00	$161.68 million	$2.37	19.68
Repay	$309.26 million	0.80	-$256.72 million	($3.03)	-0.90

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

Profitability

This table compares Loomis and Repay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loomis	5.19%	12.88%	4.18%
Repay	-83.01%	9.30%	4.26%

About Loomis

Loomis AB (publ) provides solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables. The company offers a range of solutions for cash in transit, cash management services, foreign exchange services, automated teller machines, automated solutions, and international valuables logistics, as well as operates Loomis Pay, a payment service that enables processing of various types of payment methods, such as card, cash, and digital alternatives. It serves financial institutions, banks, retailers, commercial enterprises, and other customers, as well as public sector in Sweden, the United States, France, Switzerland, Spain, the United Kingdom, and internationally. Loomis AB (publ) was founded in 1852 and is headquartered in Stockholm, Sweden.

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.