Critical Review: Paymentus (NYSE:PAY) and Nutex Health (NASDAQ:NUTX)

Nutex Health (NASDAQ:NUTX) and Paymentus (NYSE:PAY) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

5.3% of Nutex Health shares are held by institutional investors. Comparatively, 78.4% of Paymentus shares are held by institutional investors. 38.5% of Nutex Health shares are held by insiders. Comparatively, 87.8% of Paymentus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Nutex Health and Paymentus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nutex Health	0	0	2	0	3.00
Paymentus	0	6	1	1	2.38

Nutex Health presently has a consensus price target of $55.00, suggesting a potential upside of 72.58%. Paymentus has a consensus price target of $28.80, suggesting a potential downside of 15.02%. Given Nutex Health’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Nutex Health is more favorable than Paymentus.

Valuation and Earnings

This table compares Nutex Health and Paymentus”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nutex Health	$292.00 million	0.59	-$45.79 million	($9.39)	-3.39
Paymentus	$778.67 million	5.42	$22.32 million	$0.31	109.32

Paymentus has higher revenue and earnings than Nutex Health. Nutex Health is trading at a lower price-to-earnings ratio than Paymentus, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nutex Health and Paymentus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nutex Health	-14.09%	-51.27%	-9.89%
Paymentus	5.19%	10.84%	9.24%

Risk and Volatility

Nutex Health has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Paymentus has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.

Summary

Paymentus beats Nutex Health on 12 of the 15 factors compared between the two stocks.

About Nutex Health

Nutex Health Inc. operates as a physician-led, healthcare services, and operations company. It operates through three segments: Hospital, Population Health Management (PHM), and Real Estate. The PHM segment establishes and operates independent physician associations; and offers a cloud-based platform for healthcare organizations to provide value-based care and population health management. The Real Estate segment owns and owns and leases land and hospital building. The Hospital segment develops and operates a network of micro-hospitals, specialty hospitals and hospital outpatient departments which offers 24/7 care. It also provides operational and managerial services, including management, billing, collections, human resources and recruiting, legal, accounting, and marketing. In addition, the company offers healthcare services, including emergency room care, inpatient care, and behavioral health, as well as onsite imaging, such as CT scan, X-ray, MRI, ultrasound, etc.; certified and accredited laboratories; and onsite inpatient pharmacies. The company was founded in 2011 and is based in Houston, Texas.

About Paymentus

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.