Priority Technology (NASDAQ:PRTH – Get Free Report) and Sparta Commercial Services (OTCMKTS:SRCO – Get Free Report) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Volatility and Risk
Priority Technology has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Sparta Commercial Services has a beta of -0.69, indicating that its stock price is 169% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Priority Technology and Sparta Commercial Services, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Priority Technology | 0 | 1 | 2 | 0 | 2.67 |
| Sparta Commercial Services | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Priority Technology and Sparta Commercial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Priority Technology | 1.96% | -15.86% | 1.52% |
| Sparta Commercial Services | -811.63% | N/A | -1,061.05% |
Earnings and Valuation
This table compares Priority Technology and Sparta Commercial Services”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Priority Technology | $755.61 million | 1.02 | -$1.31 million | ($0.42) | -23.86 |
| Sparta Commercial Services | $190,000.00 | 47.58 | -$640,000.00 | ($0.04) | -6.18 |
Sparta Commercial Services has lower revenue, but higher earnings than Priority Technology. Priority Technology is trading at a lower price-to-earnings ratio than Sparta Commercial Services, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
11.5% of Priority Technology shares are held by institutional investors. 76.3% of Priority Technology shares are held by company insiders. Comparatively, 0.5% of Sparta Commercial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Priority Technology beats Sparta Commercial Services on 9 of the 14 factors compared between the two stocks.
About Priority Technology
Priority Technology Holdings, Inc. operates as a payment technology company in the United States. The company operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business (B2B) Payments, and Enterprise Payments. It offers SMB payments processing solutions for B2C transactions through independent sales organizations, financial institutions, independent software vendors, and other referral partners through its MX product suite, which includes MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing. The company also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, it provides curated managed services; payment-adjacent technologies to facilitate the acceptance of electronic payments from customers; and Plastiq payables management software, which helps businesses in improving cash flow with instant access to working capital. Further, the company offers embedded finance and BaaS solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. It serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. The company was founded in 2005 and is headquartered in Alpharetta, Georgia.
About Sparta Commercial Services
Sparta Commercial Services, Inc. develops, markets, and manages business websites and mobile applications for smartphones and tablets under the iMobileApp name. It offers mobile applications for vehicle dealerships, racetracks, private clubs, country clubs, schools and entertainment venues, restaurants, grocery stores, and various other merchant types. The company also owns and manages websites, which sell motorcycle, recreational vehicle, and truck title history reports for consumers, retailers, municipals, nonprofits, auction houses, banks, and insurance companies; and designs, launches, maintains, and hosts websites for businesses, as well as provides text messaging services. In addition, it offers eCommerce, customer relationship management development and integration, search engine optimization, social media marketing, and online reviews website services to its clients. Further, the company provides an equipment-leasing product for local and state agencies that helps to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment; and a range of hemp-derived cannabinol products through newworldhealthcbd.com. The company was incorporated in 1980 and is headquartered in New York, New York.
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