Analyzing Repay (NASDAQ:RPAY) and SPAR Group (NASDAQ:SGRP)

Repay (NASDAQ:RPAY) and SPAR Group (NASDAQ:SGRP) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Repay	-25.53%	8.73%	4.65%
SPAR Group	5.35%	13.20%	5.58%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repay	0	2	5	0	2.71
SPAR Group	0	0	0	0	0.00

Repay currently has a consensus target price of $12.29, suggesting a potential upside of 52.05%. Given Repay’s stronger consensus rating and higher possible upside, research analysts plainly believe Repay is more favorable than SPAR Group.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repay	$296.63 million	2.66	-$110.49 million	($0.87)	-9.29
SPAR Group	$228.87 million	0.23	$3.90 million	$0.51	4.43

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

Volatility and Risk

Repay has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, SPAR Group has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Insider and Institutional Ownership

82.7% of Repay shares are held by institutional investors. Comparatively, 9.6% of SPAR Group shares are held by institutional investors. 11.0% of Repay shares are held by company insiders. Comparatively, 59.7% of SPAR Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

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 SPAR Group

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.