Contrasting Paysign (NASDAQ:PAYS) and Quhuo (NASDAQ:QH)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Quhuo and Paysign, as reported by MarketBeat.

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

Paysign has a consensus price target of $6.17, indicating a potential upside of 46.83%. Given Paysign’s higher probable upside, analysts plainly believe Paysign is more favorable than Quhuo.

Profitability

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

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

Risk & Volatility

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

Earnings & Valuation

This table compares Quhuo and Paysign”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quhuo	$521.47 million	0.02	$470,000.00	N/A	N/A
Paysign	$47.27 million	4.72	$6.46 million	$0.13	32.31

Paysign has lower revenue, but higher earnings than Quhuo.

Institutional & Insider Ownership

0.2% of Quhuo shares are owned by institutional investors. Comparatively, 25.9% of Paysign shares are owned by institutional investors. 33.1% of Quhuo shares are owned by insiders. Comparatively, 23.4% of Paysign shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Paysign beats Quhuo on 9 of the 11 factors compared between the two stocks.

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.

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.