Analyzing Paysign (NASDAQ:PAYS) and QuinStreet (NASDAQ:QNST)

Paysign (NASDAQ:PAYS) and QuinStreet (NASDAQ:QNST) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Earnings & Valuation

This table compares Paysign and QuinStreet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysign	$56.47 million	2.35	$6.46 million	$0.15	16.53
QuinStreet	$928.72 million	1.11	-$31.33 million	($0.22)	-83.23

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

Profitability

This table compares Paysign and QuinStreet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysign	14.28%	30.64%	4.82%
QuinStreet	-1.31%	-4.13%	-2.37%

Insider & Institutional Ownership

25.9% of Paysign shares are owned by institutional investors. Comparatively, 97.8% of QuinStreet shares are owned by institutional investors. 23.4% of Paysign shares are owned by company insiders. Comparatively, 5.0% of QuinStreet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Paysign has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, QuinStreet has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Paysign and QuinStreet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysign	0	0	4	0	3.00
QuinStreet	0	1	4	0	2.80

Paysign presently has a consensus price target of $6.13, suggesting a potential upside of 146.98%. QuinStreet has a consensus price target of $29.80, suggesting a potential upside of 62.75%. Given Paysign’s stronger consensus rating and higher possible upside, analysts clearly believe Paysign is more favorable than QuinStreet.

Summary

Paysign beats QuinStreet on 10 of the 13 factors compared between the two stocks.

About Paysign

Paysign, Inc. provides prepaid card programs, comprehensive patient affordability offerings, digital banking services, and integrated payment processing services for businesses, consumers, and government institutions. Its product offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card. The company markets its prepaid card solutions under the Paysign brand. Its primary market focus is on companies and municipalities that require a streamlined payment solution for rewards, rebates, payment assistance, and other payments to their customers, employees, agents, and others. The company was formerly known as 3PEA International, Inc. and changed its name to Paysign, Inc. in April 2019. Paysign, Inc. was incorporated in 1995 and is headquartered in Henderson, Nevada.

About QuinStreet

QuinStreet, Inc., an online performance marketing company, provides customer acquisition services for its clients in the United States and internationally. The company offers online marketing services, such as qualified clicks, leads, calls, applications, and customers through its websites or third-party publishers. It serves financial and home services industries. The company was incorporated in 1999 and is headquartered in Foster City, California.