Paysign (NASDAQ:PAYS) and Quhuo (NASDAQ:QH) Financial Analysis

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

Insider & Institutional Ownership

25.9% of Paysign shares are held by institutional investors. Comparatively, 0.2% of Quhuo shares are held by institutional investors. 23.4% of Paysign shares are held by company insiders. Comparatively, 33.1% of Quhuo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Paysign and Quhuo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysign	$53.61 million	3.81	$6.46 million	$0.13	29.69
Quhuo	$521.47 million	0.02	$470,000.00	N/A	N/A

Paysign has higher earnings, but lower revenue than Quhuo.

Volatility & Risk

Paysign has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Quhuo has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paysign	14.42%	32.55%	5.04%
Quhuo	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Paysign and Quhuo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysign	0	0	3	0	3.00
Quhuo	0	0	0	0	N/A

Paysign currently has a consensus target price of $6.17, suggesting a potential upside of 59.76%. Given Paysign’s higher possible upside, equities analysts plainly believe Paysign is more favorable than Quhuo.

Summary

Paysign beats Quhuo on 9 of the 11 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 Quhuo

Quhuo Limited, through its subsidiaries, operates a workforce operational solution platform in the People's Republic of China. It provides tech-enabled and end-to-end operational solutions to on-demand consumer service businesses in industries, including food and grocery delivery, bike-sharing, ride-hailing, and housekeeping. The company also offers ride hailing solutions for ride-hailing companies; housekeeping solutions and other services for short-term rental properties and hotel cleaning services; and shared-bike maintenance solutions to address the demand for maintenance and distribution services from bike-sharing companies, as well as freight services. In addition, it engages in the development of computer software and applications; and investment holding activities. The company was founded in 2012 and is based in Beijing, the People's Republic of China.