Critical Review: Paysafe (NYSE:PSFE) & MJ (OTCMKTS:MJNE)

Paysafe (NYSE:PSFE) and MJ (OTCMKTS:MJNE) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Paysafe and MJ, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysafe	2	2	0	0	1.50
MJ	0	0	0	0	0.00

Paysafe currently has a consensus price target of $17.38, indicating a potential upside of 7.03%. Given Paysafe’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Paysafe is more favorable than MJ.

Risk & Volatility

Paysafe has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, MJ has a beta of -0.08, indicating that its share price is 108% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysafe	$1.70 billion	0.57	-$20.25 million	$0.36	45.09
MJ	$360,000.00	0.16	-$5.38 million	N/A	N/A

MJ has lower revenue, but higher earnings than Paysafe.

Insider and Institutional Ownership

54.4% of Paysafe shares are held by institutional investors. 35.9% of MJ 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paysafe	-1.38%	12.92%	2.25%
MJ	N/A	N/A	N/A

Summary

Paysafe beats MJ on 8 of the 11 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 MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.