Critical Comparison: Repay (NASDAQ:RPAY) & Trip.com Group (NASDAQ:TCOM)

Repay (NASDAQ:RPAY) and Trip.com Group (NASDAQ:TCOM) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Repay and Trip.com Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repay	0	2	5	0	2.71
Trip.com Group	0	4	7	1	2.75

Repay presently has a consensus price target of $12.29, indicating a potential upside of 58.73%. Trip.com Group has a consensus price target of $64.63, indicating a potential upside of 4.49%. Given Repay’s higher possible upside, equities analysts plainly believe Repay is more favorable than Trip.com Group.

Insider and Institutional Ownership

82.7% of Repay shares are held by institutional investors. Comparatively, 35.4% of Trip.com Group shares are held by institutional investors. 11.0% of Repay shares are held by company insiders. Comparatively, 23.0% of Trip.com Group 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.

Profitability

This table compares Repay and Trip.com Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Repay	-29.01%	8.34%	4.61%
Trip.com Group	28.78%	11.52%	6.33%

Risk and Volatility

Repay has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Trip.com Group has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Earnings and Valuation

This table compares Repay and Trip.com Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repay	$305.93 million	2.57	-$110.49 million	($0.98)	-7.90
Trip.com Group	$48.74 billion	0.82	$1.40 billion	$2.22	27.86

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

Summary

Trip.com Group beats Repay on 11 of the 15 factors compared between the two stocks.

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.

About Trip.com Group

Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, It provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online inquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.