Analyzing Envestnet (NYSE:ENV) & Paysafe (NYSE:PSFE)

Paysafe (NYSE:PSFEGet Free Report) and Envestnet (NYSE:ENVGet Free Report) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares Paysafe and Envestnet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paysafe -0.82% 15.26% 2.56%
Envestnet -15.33% 14.75% 5.01%

Analyst Ratings

This is a summary of current ratings and recommmendations for Paysafe and Envestnet, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paysafe 3 3 2 0 1.88
Envestnet 0 3 5 0 2.63

Paysafe currently has a consensus price target of $22.01, indicating a potential upside of 19.05%. Envestnet has a consensus price target of $64.14, indicating a potential downside of 6.33%. Given Paysafe’s higher possible upside, research analysts plainly believe Paysafe is more favorable than Envestnet.

Volatility & Risk

Paysafe has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, Envestnet has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Valuation and Earnings

This table compares Paysafe and Envestnet’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paysafe $1.60 billion 0.70 -$20.25 million ($0.22) -84.05
Envestnet $1.25 billion 3.03 -$238.72 million ($3.56) -19.24

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

Institutional and Insider Ownership

54.4% of Paysafe shares are held by institutional investors. 8.9% of Envestnet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Paysafe beats Envestnet on 8 of the 14 factors compared between the two stocks.

About Paysafe

(Get Free Report)

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 Envestnet

(Get Free Report)

Envestnet, Inc., through its subsidiaries, provides wealth management software and services in the United States and internationally. It operates through two segments: Envestnet Wealth Solutions and Envestnet Data & Analytics. The Envestnet Wealth Solutions segment offers Envestnet | Enterprise, an end-to-end open architecture wealth management platform, as well as offers data aggregation and reporting, data analytics, and digital advice capabilities; Envestnet | Wealth Analytics that transforms data into actionable intelligence; Envestnet | Tamarac which provides trading, rebalancing, portfolio accounting, performance reporting, and client relationship management software; and Envestnet | MoneyGuide that provides goals-based financial planning solutions to the financial services industry. This segment also provides Envestnet | Workplace Solutions which offers a suite of services for advisor-sold retirement plans; Envestnet | PMC that offer research and consulting services to assist advisors in creating investment solutions, and portfolio overlay and tax optimization services; and Envestnet | Billing Solutions which provides revenue management and hosted fee-billing solutions. The Envestnet Data & Analytics segment provides Envestnet Data & Analytics, a data aggregation, analytics, and digital experiences platform that provides clients and their account holders with data connectivity via open APIs, data enrichment, AI-based analytics, and digital experiences. It serves retail banks, credit unions, credit card providers, wealth management financial advisors and institutions, financial technology innovators, financial advisory firms, research and analyst firms, personal financial management, small business accounting, e-commerce, payment solutions providers, small business lending, and authentication customers. The company was founded in 1999 and is headquartered in Berwyn, Pennsylvania.

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